Parke Davis, Pakistan – A Company Report

PARKE-DAVIS

Parke Davis was established in the USA in 1866 and is one of the largest manufacturers of pharmaceutical and biological preparations in the world.

Parke Davis’s corporate promotes a management style which emphasis quality and reliability. This has earned the company, a leading position in the pharmaceutical industry all over the world. Parke Davis is a unit of the Warner-Lambert Group. The world wide operations of the Warner-Lambert Group are spread  in more than 140 countries. The Warner-Lambert Group, has the  research and technical support of four major Research centers and more than 100 manufacturing facilities. Approximately 45000 people work world wide for Warner-Lambert Group.

 

Parke Davis is responsible for introducing the principle of standardization in medical products that every lot produced has the same strength or potency as every other unit.

 

Parke-Davis Pakistan  (Pvt.) Ltd.

 

Parke Davis was incorporated in Pakistan as a Private Limited Company in 1960. The production facility was constructed in 1963, ensuring local production of a wide range of Parke-Davis world renowned products, previously imported costing a huge sum of Foreign Exchange.

 

Parke Davis has a Philosophy of world wide standardization with the same quality standards maintained at all production facilities operating under its license.  The local production  plant is capable of maintaining the same standard and quality of products, as those produced any where else in the world.

 

Parke-Davis Pakistan Public Ltd.

 

The initial Public offering was announced in June 1983 and Parke Davis Private Limited  was converted into the public limited company. Parke-Davis Pakistan Public Limited Company acquired the shares of Warner-Lambert(Pak) Limited and the restructuring process was finalized  in November 1984.

 

The company was  declared amongst the top 25 companies by the Karachi Stock Exchange for the three consecutive years i.e: 1984, 1985, 1986.

 

Mission Statement: “Balancing Wellness and Life”

 

“The patient is waiting.” At Parke-Davis, we recognize the urgency to create breakthrough medicines. We’re committed to helping you and your family balance wellness, longevity and quality of life.

 

Parke-Davis, a division of Warner-Lambert, is devoted to discovering, developing, manufacturing and marketing quality pharmaceutical products.

Safety and Environment

 

Parke Davis has booked investment of Rs. 278 Million for improving productivity, enhancing GMP, Safety and Environment and bringing the latest MIS solutions. GMP, Safety and Environmental compliance is the foremost criteria of performance and waste management program. Whereby all types of industrial waste is either recycled or incinerated in worth emulating other companies.  “PRISM” is the only one of its kind of integrated software in Pakistan.

 

Brands

 

Parke Davis & Company limited is operating in Pakistan for the last 34 years. The company is successfully manufacturing  and marketing 30 products.

 

The leading brands of Parke Davis are:

 

• Ponstan
• Cholormyecetin
• Basoquin
• Benadryl
• Mylanta-2

 

The recent launches in Cardio-vascular therapeutic group also attained significant success in their respective categories.

 

Management Philosophy

The bottom line success of Parke-Davis is a result of its management philosophy. The management of Parke-Davis has implemented MVP (management value practices) which can be summarized as under:

 

• Prize creativity
• Be fast and first to opportunity
• Focus on what is important
• Be open and candid
• Reward true success

 

The management at Parke Davis has gone a step further and virtually redefined the way things are done at the company. New Values were introduced and work behavior redefined. They have set ever higher standards of performance.

 

They care for the people so much that they have even changed the word for how they regard one another. Not as employees – but as colleagues.

 

The people at Parke-Davis are following the motto:

 

” We are making the world feel better “

 

Parke-Davis was also awarded Excellence Certificate  for the 1987  and the coveted Corporate Excellence Award for the year 1994, 1995, 1996 by the Management association of Pakistan.

 

International Corporate Philosophy

Parke-Davis being a Division of Warner-Lambert shares the same International Corporate philosophy. The company aspires to be a world market leader in consumer health care products.  The company derives its competitive edge from its superior research and development facilities.

 

Parke-Davis products are favorably positioned for growth tHuman Resourceoughout the world. Demand for these products is being driven by a number of favorable environmental factors.

 

Aging populations in many parts of the world are increasing the need for prescription pharmaceuticals. The trend toward self-medication likewise has spurred interest in the company’s expanding line of consumer health care products.

 

Meanwhile, the emerging markets of Asia, Europe and Latin America provide a large number of new consumers, due to increasing health consciousness and health care facilities fuelled by the technological advancements by lowering the cost of these products.

 

Parke-Davis has the people and the strategies in place to swiftly and fully capitalize on these and other global growth opportunities. It also has products capable of being expanded worldwide–brands of high quality and value that help people tHuman Resourceoughout the world feel

better.

 

Organizational Structure

 

Parke Davis is built around six traditional departments. Each department has various divisions based on their specific activities. The departments are: Marketing (Ethical Products), Marketing (CHPG), Finance, Quality Assurance, Plant and Human Resources.

 

The sales team comprise of  Medical sales representatives. The Medical sales representatives report to district field office who reports to regional sales manager. There are four regional sales manager posted at Lahore, Rawalpindi, Quetta and Peshawar. All these regional units are under National Sales manager reports to the Marketing (Ethical products) department.

 

Parke Davis Pakistan Private limited employees around four hundred employees, with number of temporary employees varying every day.  The non-management employees are around two hundred along with seventy  female employees. The field force comprise of about sixty individuals posted outside Karachi.

HUMAN RESOURCE DEPARTMENT ANALYSIS

Human Resource Information System

 

Parke-Davis lacks a automated Human Resource Information System (HRIS). All employees’ records are kept manually and therefore result in unnecessary time lag. This information could be otherwise used more productively.

 

Future Forecast

 

The Human Resource Department  is not involved in Human Resource demand and supply forecasts. The Human Resource Department rely totally on the department heads for their Human Resource requirements.

 

There is no program to schedule the induction of management trainees and they recruit people as the need arises.

 

Training and Development Plan

 

There is no annual plan formulated for training and development of the employees and the respective departments decide on adhoc basis who needs what type of training (depending on their appraisals).

 

Career Plan And Counseling

 

Human Resource Department is not involved in career counseling, however supervisors do provide employee counseling in their individual capacity. Apart from succession planning of key positions the Human Resource department does not devise career plans.

 

Job Description

 

Job descriptions are also prepared by the supervisors with no support from the Human Resource Department. Neither is the employee involved in the preparation of the job description.

 

Union Relations

 

Though the Human Resource Department  has been successful in developing a cordial relationship with the union leaders, the management does not have a strong direct link with the labors reflecting that the union is very strong.

 

Human Resource Audit

 

There is no concept of Human Resource audit in Parke Davis and therefore, without proper feedback Human Resource Department cannot work towards continuous improvements.

 

Future Outlook

 

However the future seems promising as Parke Davis is undergoing cultural change from bureaucratic set-up to a more open and professional environment (all procedures have been documented).

 

Human Resource department are trying to adapt the international policies of Warner Lambert into the local policies (this is in the process).

The workforce:

The total employees of Parke Davis are approx. 395 out of which 60 are field force in up country and 335 are in Karachi.

 

Temporary employees are employed for absenteeism and their number vary daily. There are approx.195 non-management employees. There are approx.65 female employees in Parke Davis.

 

Offices

 

Parke Davis  has its production facilities and Head Offices in Karachi at S.I.T.E. One small office for each regional sales manager are situated in Lahore, Rawalpindi, Quetta and Peshawar. Medical sales representatives report to district field office who reports to regional sales manager.

 

Employee Relations

 

The top management of Parke Davis, is  promoting a new culture to overcome the inefficiencies of the previous bureaucratic set up. The new culture is people centered. Now Parke Davis has an open-door policy. Any employee who has a problem or query can directly without appointment, however, employee counselling is provided primarily by their respective supervisors.

 

Disputes and Conflict Handling

 

Collective Bargaining Agents comprising of labour union leaders covers most of the issues regarding conflict, disputes among labors.

 

However cases of violation of discipline are dealt with by the management in the following manner: employee is first given a warning and persuaded to comply with the organisational rules and regulation. Further gross violation may lead to termination of employment but such steps are taken as a last resort.

 

Legal issues

 

There are no legal problems regarding the operations of the company . Parke Davis is managing labour issues very well and there is full compliance of labour laws.

 

GMP compliance cell ensure strict adherence to the manufacturing procedures, which helps in avoiding product liability and safety lawsuits.

 

HUMAN RESOURCE DEPARTMENT, FUNCTIONS AND PERFORMANCE:

 

The Human Resource department has a very conservative role and subdued influence in Parke-Davis. The Human Resource function is reduced to a mere advisory unit.

 

The relative importance assigned to the Human Resource function is evident from the fact that the Human Resource department is the only department that does not have a director like the other departments.

 

PLANNING:

 

There is no annual inventory that may help in determining that  employees might be needed in a department. The user department has to determine whether it needs any new employees or not. This means that they have to determine the job specifications and the requirements of the job themselves.

 

JOB DESCRIPTION:

 

Non Management Staff

 

There is no job description document for the non-management staff. This is a tricky problem and limitations due to union and labour law.

 

Job rotation in Parke Davis often comprises of interdepartmental rotations e.g. a laboratory staff to production and vice versa.

 

Management Staff

 

Job description is prepared by the concerned employee himself or herself. The respective supervisor reviews it and the department manager finalizes it. Afterwards, it is sent to the Human Resource department for signature and the director of the respective department approves it and at the end the employee signs the job description document.

 

Non Traditional Jobs

 

Although job design for most of the traditional openings is done by the company itself, for some of the unusual activities, they may ask some contractors to design the specifications of the job . Any new activity for example when a new product is added might be asked to be done from contract labor, hired on a temporary bases from outside.

 

3. RECRUITMENT:

 

Management

 

Parke Davis recruits employees through advertising vacancies in the newspapers. Parke-Davis receives applications from potential employees on a regular basis, without any employee referrals or advertisements. The third major source of recruits is employee referrals.

 

Non Management

 

Non-management employees are recruited through supervisors and union recommendations. Vacancies when filled with internal staff is done through nomination and not through soliciting applications from employees.

 

 

Parke Davis Encourages University Recruitment

 

Parke Davis offers fast-paced and successful career paths to talented fresh graduates from universities. Parke Davis along with its parent company is actively involved in talent hunt and conducts on campus etc.

 

In order to satisfy the ever increasing demand of talented and suitable employees Parke-Davis has started the Global Leadership Associates Program

 

Global Leadership Associates Program

 

Global Leadership Associates Program is one of many ways that MBAs can join Parke Davis. This program open to candidates from inside and outside Parke-Davis however is very s selective, highly competitive program requiring the ability to relocate frequently.

 

Eligibility

 

• MBA’s recognized as leaders in their academic programs or

within Parke Davis.

• Strong desire to learn international management.
• New MBA’s authorized to work on a permanent full-time basis.
• Individuals who have the competitive fire and resilience to deal with different, and sometimes difficult, business leadership situations.

 

Employment Opportunities at Parke Davis

Parke Davis seek talented individuals to work for a broad range of functional areas. The following opportunities describes a part of their immediate MBA needs.

 

• Business Analyst
• Information Technology
• Finance
• Global Leadership Associate Program
• Human Resources
• Marketing
• Consumer Products
• Pharmaceutical

 

Internship Opportunities

 

Interns are recruited in summer and gives the individual opportunity to work for a variety of Human Resource projects supporting line and staff Human Resource functions. The internship program is project-based and involves high level of responsibility and heavy interaction with Human Resource and other corporate senior management.

 

After successful completion of the internship program, Human Resources Associate candidates will be considered to join the Human Resource Associate Program.

 

The Human Resource Associate program is an opportunity for Human Resource professionals to build strong competencies early in their career. The program is flexibly designed through a number of tailored assignments over a one to two year period.

 

RECRUITMENT CHANNELS:

 

 

Positions are advertised on a need basis in leading newspapers like Dawn, The News etc. Hiring for entry level management workers is usually done this way.

 

Unsolicited applications are received throughout the year. These are usually from young university graduates

 

Employee referrals are an important source and are most often used. They not only have the advantage of increasing credibility but also has the advantage of eliminating the need to cross check references.

 

Parke-Davis also employs head hunting agencies. These agencies help Parke-Davis in recruitment by seeking able recruits from other organizations. This is usually done for lower level employees like production workers etc.

 

 

SELECTION

 

Parke Davis usually offers permanent employment as against contractual employment.

 

Management staff is  usually hired after  three interviews. The concern department supervisor conducts the first interview to check capabilities and knowledge. The second interview is scheduled with Human Resource manager and the respective department head. Successful candidates are called for final interview with the general management.

 

 

ORIENTATION & PLACEMENTS

 

Orientation program consist of introduction of Parke Davis and information about the job. Promotions are based on merit and capabilities with no regard for seniority. There is no concept of demotion in Parke Davis. The employment agreement  enables the management to transfer employees to any department.

 

TRAINING AT PARKE DAVIS:

 

The training and development practices are very sketchy at Parke-Davis. Departments assess their employees training /development needs through the results of annual appraisals. In the absence of Human Resource Audit the Human Resource Department does not asses needs for training and development and as a result there is no ‘training and development calendar’ and employees are send to training programs on the recommendations of the supervisor.

 

TYPES OF TRAINING: In House Training

 

Prime responsibility of all the employees is to promote quality and  ensure that customer always trust the product which bear the company name as a Quality Product.

Training and candid discussion sessions are some of the techniques that can help them in propagating the message and clarify the concepts.

 

Often 90-minute sessions are arranged with a group of workers on CGMP and SH&E Compliance, basic guidelines for the enhancement and awareness of policies and procedures and to emphasize their importance.

 

Jd Edwards:

 

Conducted to train the finance and Accounts department workers, on Accounts Receivables and Accounts Payable module of PRISM currently used by the company for managing its receivables and payables.

 

 GMP:

 

Two sessions each of two hours are conducted by the GMP Compliance team on Good Production / Manufacturing Practices. These courses are attended by all the concerned staff of the Plant, Distribution and Quality Assurance.

 

Two one- hour sessions on Validation Concepts and Definitions are also held. These sessions are attended by the GMP Compliance team.

 

In- House Safety & Health Training:

 

Safety and Health training is also provided on  regular basis  for trainees from different departments.

 

This may include training on such topics as:

1. Bloodborne pathogens Training
2. Two day first aid training
3. Forklift truck drivers training
4. Hazardous energy isolation( lockout/tagout) training
5. Special work permit training

 

This training program is conducted by the Safety, Health and Environment team.  Training Workshop for Analogue Addressable Fire Detectable and Alarm is regularly organized. Another training session is conducted on Hazard Communication & Training. There is also a training program conducted on Hearing Conservation & Training. All these ensure safety to health at the plant site.

  

4. Responsible Decision- Making Workshop:

 

This workshop is held for all  management and non-management. The entire management team participate in this workshop. The field colleagues attend the workshop in the Annual Sales Conference.

 

The Human Resource Department is also arranging to dub the video cassette and translate other material in local language, so that all the colleagues can fully benefit from the workshop.

 

On The Job Training:

The three production departments that undergo such on-the-job-training are:

1. Production
2. Packaging
3. Quality Assurance

 

The training program consist of detailed education on current Good Manufacturing Practices and on the  Standard Operating Procedures.

 

 

6. Standard Operating Procedures :

 

As part of the new hiring procedure employees are provided  with an Standard Operating Procedures manuals required to refer from time to time during the training.

 

Every employee has to be well versed with Standard Operating Procedures manuals, before he starts working on his own. A supervisor has to give final evaluation at the end of the training period.

 

 Good Manufacturing Practices :

 

On – the  – Job Training at Parke-Davis includes the Good Manufacturing Practices as an integral part. Good Manufacturing Practices is a universal concept applied in the Pharmaceutical Industry. This concept is related to the Quality Management of the different functions of the value chain starting right from the procurement to final consumption. It promotes quality while preserving the ethical values.

The major emphasis is on the Safety of the Operator and the Quality of the Product. This is actually an all encompassing concept with all the different and diverse aspects of the operations being taken care of, delivering quality while caring for employees and customers alike. This is a step towards safeguarding the interest of all the stakeholders.

 

The Eleven Golden Rules of the GMP :

• Keep your work area neat and clean
• Make sure the equipment is clean.
• Check your Standard Operating Procedures, make sure they are current.
• Check equipment calibration is not past due.
• Follow the instructions on Standard Operating Procedures /Batch Sheets/ Analytical Procedure.
•  Signature for a given step must be in line with the activity worked on.
• Be sure before you sign anything.
• Do not use scrap paper for recording any data. Do not destroy/ discard any data.
• Do not over-write do not forget to initial and date and cross outs.
• Report any deviation promptly.
• Pay attention to details.

 

In order to maintain the Product Quality the company is committed at training and updating its colleagues on current Good Manufacturing Practices.

 

The GMP compliance team conducts twenty-four two hour sessions on different GMP topics.  These courses are attended by the Plant, Distribution and Quality assurance Departments.

 

These include:

 

• Good Documentation Practices
• Good Personal Practices
• Good Housekeeping Practices
• Good Production Practices

 

Parke-Davis has adopted the GMP as an integral part of the Total Quality Management System. This system is about ensuring that  quality is maintained and contributed by all areas.

 

This training for GMPs is given upto the supervisory level. Below them, Good manufacturing and Good production practices training is not provided. The line manager training is also done by the supervisors.

 

Good documentation training is mainly done for:

1. Supervisors
2. Managers
3. Area in-charges
4. Assistant managers

 

Training is distributed over the entire plant area. Minimum one month is provided for each type of GMP in a year. If more training is needed then it will be provided as the need arises.

 

One important aspect of training is that all employees, especially of the technical sales force are not well versed in english. For them all the training booklets are provided in urdu. This shows Parke-Davis commitment to realizing each individual employees weaknesses and shortcomings and also ways are already in place to ensure that they do not become an impediment in their training, development, and growth.

 

1. B) External Training:

 

There are 2 types of external training provided:

1. Courses, seminars, workshops within the country
2. Training courses abroad

 

In the courses provided within the country, employees from different departments attend various seminars, workshops, training sessions, courses etc. The time period for these training programs ranges from 2-day workshops to month long training, for example some of the courses being attended regularly are:

 

• “Company secretarial administration” by Employers Federation of Pakistan
• “Environmental Health and Safety of Industrial Workers” by Institute of Environment Services and Research
• “Teamwork” by NCR corporation
• ” Understanding labor laws” by Employers federation of Pakistan
• “Year 2000 computer crises” by Management Association of Pakistan
• “Safety and health” held in Manila, Philippines
• ” Marketing for non-marketing executives” by Marketing Association of Pakistan
• ” HUMAN RESOURCE Asian region meeting” held in Kuala Lumpur, Malaysia
• ” Seminar on HUMAN RESOURCE management ” by College of Business Management
• ” SITE quality auditor” held in Bangkok, Thailand
• ” 4S training ” held in Manila, Philippines
• ” Introduction to Excel” by Pakistan Institute of Management.
• “Essential Features of Major Labour Laws”, by Employers Federation of Pakistan.
• “HUMAN RESOURCE New Competency Training Program”, held in Kuala Lampur.
• “Streamlining Administrative Procedures and Paperwork”, by Pakistan Institute of Management.
• “Pre-Budget Seminar on Federal Budget”, by Management Association of Pakistan.
• Seminar on “Review of the Effects of Economic Emergency and Sanctions”, by Pakistan Institute of Chartered Accountants.
• “How to Improve Morale, Motivation & Commitment”, held by Pakistan Institute of Management.
• Seminar on “Computer Applications in Personnel Management”, by Pakistan Institute of Personnel Management.

 

 

1. C) Training Abroad:

 

The HUMAN RESOURCE department will decide which employee is to be sent abroad. The employee who is sent abroad will get his monthly stipend according to the local payroll and also allowance for staying abroad, for the time period of his training.

 

 

5. PERFORMANCE CRITERIA:

 

Job Performance Standards

 

Standards serve to give a basis for comparison of performance. In helping their member of staff to plan their development, the HUMAN RESOURCE department clarifies “what” is expected of them and to have means of comparing their current performance with some view of what would constitute good performance. From this, development needs can be identified.

 

As an overall framework, it is convenient to identify standards in four broad areas of contribution. These are:

• Personal Effectiveness
• Business Effectiveness
• Managerial Effectiveness
• Professional Effectiveness

 

The more the HUMAN RESOURCE manager can encourage the members of their staff to identify areas of development themselves, the greater will be their sense of ownership for these goals. However, the manager needs to provide other insights and feedback on performance which can help to shape these development goals.

 

The HUMAN RESOURCE manager should feel confident in being able to describe the behaviour exhibited by good performers and also be able to identify specific examples of behaviour in their staff, which indicates whether or not a particular development need exists.

 

The standards of Professional effectiveness are specific to each function discipline, and the Human Resource managers should provide guidance in this area.

 

The following are the core development standards that are practiced at Novartis.

 

Personal Effectiveness:

 

1. Team Work:

The ability to contribute effectively within a team to get work done:

• Recognizes the need for a team approach and roles in team.
• Recognizes own and builds on others’ strengths.
• Listening with empathy.
• Agrees with collective decisions and carrying out specific action items on time.
• Recognizes the benefits of methodical approach.

 

1. Meeting:

The ability to fulfill own role tHuman Resourceough participation:

• Prepares background work.
• Leads and participates in accordance with the procedure of the meeting.
• Listens to and understands others’ contribution.
• Completes action on time as agreed.

 

1. Self- Management:

The ability to take responsibility for and manage own performance in relation to work and personal development:

• Plans and prioritizes works to meet objectives on time.
• Makes use of a people network to achieve results.
• Demonstrates sensitivity to different people and culture.
• Builds on personal strengths and seeks feedback on improvement.
• Recognizes own strength and weakness and consciously seeks improvement.

 

1. Communicating and Influencing:

The ability to give, receive and interpret information accurately and to be able to influence to achieve agreed outcomes:

• Communicates clearly and briefly.
• Listens actively and with empathy.
• Check understanding when necessary.
• Delivers effective presentations by using appropriate media.
• Identifies the key players and uses a range of strategies, styles and skills to influence others.
• Show sensitivity to external/ environmental factors which may affect the outcome.

 

 

1. Problem Solving and Decision Making:

 

The ability to identify and resolves a problem and sees it tHuman Resourceough to satisfactory conclusion:

• Identifies problems at an early stage.
• Assembles all relevant information.
• Generates options creatively.
• Evaluates options rigorously, decides on course of action.
• Evaluates outcomes to ensure the problem is satisfactorily resolved and to learn from that experience.

 

Business Effectiveness:

1. Business Appreciation and Improvement:

 

The ability to understand, apply and make increased use of business principles to improve business performance:

• Understands, interpret and distil financial data.
• Understands share holder value.
• Identifies and meets key internal and external customers’ needs.
• Understands and supports other functions within the business.
• Contributes creative and practical ideas for business improvement and customer satisfaction.
• Uses quality management approaches in day to day activities.
• Anticipates and is receptive to business driven changes.

 

Management Effectiveness:

 

1. Managing:

 

The ability to achieve results by using essential managerial skills with and tHuman Resourceough others:

• Recognizes and satisfies team and individual needs.
• Agrees objectives and sets standards of performance.
• Provide guidance on how they can be achieved.
• Seeks and obtains feedback on progress to strive for higher standards of performance.

 

1. Leading:

 

The ability to use appropriate leadership styles in different situations:

• Understands how different managerial styles can have an impact on climate and performance.
• Displays a range of behaviors relevant to the needs of individual and situations.
• Create a climate conducive to necessary business change.
• Accepts accountabilities and delegate as required.
• Displays supportive behaviour and build on subordinates’ strength.
• Stimulates and coordinates activities of others in the required business direction.
• Cultivate a conducive learning environment for staff for continued improvement.

 

1. Managing Work Resources:

 

The ability to make the best use of resources in achieving work results:

 

• Establishes and allocates work priorities in relation to importance and urgency.
• Agrees achievable objectives and produces a realistic strategy for achieving them.
• Organizes work in logical sequence with built – in review.
• Understands principles and benefits of organization job design.
• Makes suggestions for improved systems.
• Continuously seek to improve business and work processes.

 

Setting the context:

 

1. Induction:

The manager inducts the individual into the work situation, so that they:

• Build relationships, understand norms etc. that will enable them to become comfortable with the work climate.
• Establish / develop a network of contacts relevant to their role activities.
• Understand and accept responsibility for their own job development processes and programs.
• Have a clear expectation of both the Manager’s role and their own role.
• Use the formal induction opportunities available.

 

1. Role Clarification:

The HUMAN RESOURCE Manager reaches and agreement with the individuals in a way that results in the individual’s:

• Understanding and agreeing with what they are accountable for doing.
• Being clear about the required outputs of their job.
• Being aware of the major influences the individuals may experience in pursuing that role (e.g. conflict over scarce resources, cooperation and compromises which may be necessary, opportunities for learning and for improving the current processes / arrangements).
• Understanding how their individual roles fit in with and contribute to the organization’s strategic business plan.
• Understand how the individual’s present to their long-term career.

 

 

Managing Performance:

 

1. a) Setting Objectives and Gaining Commitment:

For each key area of an individual’s job, the manager identifies and gains agreement to specific objectives to be achieved, which result in purposeful and productive action from the individual.

 

1. b) Allocating Suitable Work / Tasks:

The manager ensures that the work allocated to the individual has: variety, is challenging (but within the individual’s competence or immediate potential to perform); and is meaningful and important to the organization.

 

The manager guides the individual on how best to perform the work.

 

1. Establishing Performance Criteria:

 

The manager identifies shares and gains commitment to measurable, achievable and challenging job outcomes for all individuals.

 

 

1. Using Performance/ Improvement Opportunities:

The manager recognizes and uses specific and timely opportunities to engage the individual in discussions in specific job related issues that can bring about improved job performance.

 

1. Tracking and Measuring Performance:

The manager regularly gathers information from a variety of sources on the individual’s achievement, so that high quality data is available for appraisal, feedback and objective setting.

 

1. Giving Feedback:

The manager provides timely, specific, actionable information to the individual against performance criteria and personal development plans in such a way that the feedback is accepted and acted upon by the individual.

 

1. Giving Appropriate Reward:

 

The manager ensures that rewards and recognition reflect the individual’s performance, and that the individual understands the connection between rewards, recognition and performance.

 

 Encouraging Development And Growth:

 

1. Joint Development Planning:

 

Opportunities for development and growth are identified, created, communicated and are then planned and managed in a manner consistent with the individual’s development needs and the needs and resources of the business.

 

1. Job Training:

 

• The manager provides / organizes learning events to aid development towards appropriate standards.
• The manager briefs the individual on the purpose and objectives of the learning event, how it fits into the individual’s work activiies, and what should be the desired outcomes from participating in the learning event.
• The manager debriefs after the learning event to reinforce learning by the individual.

 

Career Development:

 

1. Establishing Realistic Understanding

The Manager discusses the issues involved in reconciling individual aspiration with business needs, performance criteria, and potential appraisal, and the fact that career development is not synonymous with promotion.

 

1. Understanding the Shared Responsibility:

 

The Manager explains the concept of “partnership”, the respective roles of the manager and individual, in relation to the organization’s career development process, what is expected of each role and how the career development process operates.

 

1. Managing Information:

 

The HUMAN RESOURCE Manager ensures that the relevant information is made available on the individual to the career development process and as appropriate, discusses this with the individual.

 

Development Worksheet:

 

The company uses Development Worksheet, to help the staff get the best learning experience. It is designed to be used to prepare and review any planned development experience. For example, if an important piece of work is coming up for one of the teams, like a major sales/ product launch, major negotiation or plant overhaul etc., the HUMAN RESOURCE department asks the members of the staff to prepare for that and then review it in the exact same way as they would review a training program.

 

The Learning Review sheet is used to review any event that happens in the course of the day to day work, for example, a meeting was not too productive, an experiment that went well, a discussion with a customer that was difficult etc. If the HUMAN RESOURCE Manager feels that there is a lot of good potential learning to be gained, then he may suggest that the staff members complete the review and talks it tHuman Resourceough with them. Skillful learners will do this for themselves, but everyone may need a bit of encouragement to review experiences that they may not have enjoyed.

 

It is important to use these tools when they are likely to have best effect – i.e. as soon after the experience as possible and when the HUMAN RESOURCE Manager feels that some real value is going to be derived. The trainees and the participants may want to refer to these sheets either during the coaching session or after, and probably refer to them from time to time.

 

The format of the development worksheet:

 

The development worksheet has the following sections in it, that are required to be filled by the staff members.

 

1. DATE
2. DESCRIPTION
3. AIMS AND OBJECTIVES

 

Manager/ Participant Preparation:

 

• The manager/ participant is expected to fill out the form that requires him to describe the different ways in which he thinks the activity he is learning, is relevant to his present or next role.
• The participant is to explain what business/ organization priorities could be improved by applying the learning from this event/ experience.
• The manager/ participant is expected to state what benefits could result from tackling these priority issues.
• He is to state if he is clear on the potential benefits of this event for him, and what they are.
• The participant should write if he thinks there are any concerns or reservations about attending this event/ undertaking this experience and how he thinks they could be resolved.
• The manager/ participant should state an agreed upon date for a follow-up discussion.

 

Action Planning and Goal Setting:

 

The learning log is reviewed. The participant considers the extent to which he consciously practices the newly acquired skills and knowledge, to his present job. This helps him consider his present situation.

 

To consider the future situation, the HUMAN RESOURCE manager / trainer and the participant consider how these skills and knowledge can be applied to resolving the business/ organizational priorities, previously with the manager. The HUMAN RESOURCE manager/ trainer help the participant to understand how he can operate differently and how he can recognize the differences.

 

Other important factors that need to be considered, while trying to determine the likely future situation include:

• Further experience and opportunity to apply the learning.
• Any support needed and from whom.
• Other ways of reinforcing or extending the learning.
• Help in continuing to learn from his experience.
• What else might the participant build on and what might hinder him.
• What opportunities are there in his present job to develop these skills and experiences further.

 

The action plans and goals are then to be completed on the Action Plan Sheet, by the participant. This Action Plan Sheet is then reviewed by the HUMAN RESOURCE manager or the trainer.

 

Follow Up Discussion:

 

The manager/ participant has to attend a follow up discussion session with the Manager, at the date that was agreed at the time of preparation.

 

The main issues discussed in the follow up are pertaining to:

• The extent to which the activity met the expectations that were identified before the event.
• The thinking that lay behind the preparation of the action plan.
• Review and agree on a final action plan in the light of the discussion.
• How they will review and follow up on the action plan.
• Agree on a follow up date to review progress action plan.

 

At the start of a year, goals are given to the employees and every quarter employees sits with their respective supervisors and finally it becomes part of the appraisals.

 

6. PERFORMANCE APPRAISAL

 

Appraisal parameters (are rated from 1 to 9 by the supervisor) are quality of performance, co-operation with others, personal involvement, development of staff. Comments of the supervisor is also written in the appraisal form and send to the department head for signature and then send to HUMAN RESOURCED. At the end of the appraisal feedback meeting between the supervisor and the employee, the comments of the employee about the appraisal is also taken in the form.

 

The performance criteria at P-D is qualitative and quantitative.  This is done on a quarterly basis.  Employees set their own goals upto a certain level. These goals are o be quantified and have to be specific so that achievement can be monitored and they can be can be measured against the standards for evaluation.

 

Top performer for each department will be announced within the company and is rewarded according to his performance level.

 

7. COMPENSATION MANAGEMENT:

 

Parke Davis is in the first quartile of the pay scale (salaries & wages) in the pharmaceutical industry. It offers conventional compensation package which includes provident fund, gratuity, loans etc.

 

P-D believes that employees should be compensated according to their actual contribution and value to the organization.  They also believe that employees should be compensated in accordance with the market based pricing so that they don’t feel cheated and there is minimum possible turnover and absenteeism. To avoid loss of valuable and trained workers P-D does a survey every alternate year to compare pharmaceutical companies and compare the salaries. This way benchmarking is done.

 

The pay given by P-D ultimately is higher than the average. If employees are hired from rival companies, then the pay ahs to b higher than what the previous employer was paying.

 

Bonuses:

 

Bonuses are also awarded to employees who are truly deserving. There are 2 formulas:

 

1. For top management : 5.5% of the basic salary
2. For middle management: 4.5% of the basic salary

 

 

Other Benefits:

 

1. Gratuity and Pension (Min 10 year)
2. Golden Handshake (only for top management)
3. Medical benefits:

• Group Life Insurance (for accidents)
• Medical doctor in the company
• Family medical allowance (depending on grade of employee)
• Treatment of employee if recommended by the supervisor

** No medical insurance is however available.

 

 

Motivation and Productivity.

 

To motivate and improve productivity Parke Davis arranges ‘Colleague Recognition Day’. It is an annual get-to-gather in which employees are invited with their families. In ‘ Colleague of the Year’ award, $ best performers are selected and their photographs are hung in front of the CEO office for 1 year (the performance is measured in 2 years comparison. At the departmental level, there are numerous activities e.g. ‘Man of the Month’ award in production. For field colleagues, ‘Man of the Quarter’ and ‘The Best Achievers’ titles are given. Parke Davis recent GMP audit showed excellent results and to reward the hard work, 20 people (comprising of production and GMP compliance team) were sent to PC Bhurban for 3 days trip.

 

Incentives and Rewards

 

Long Service Awards

During the second quarter of 1997, Parke Davis Pakistan held the Long Service award Ceremony in celebration and acknowledgement of the long-term services rendered by its employee to the company. The employees were awarded cash bonuses and certificates for their service.

 

The length of the service was divided into 6 categories or ranges:

1) 05 Year Awards

4 employees received it. (3 from Plant and 1 from Quality Assurance)

2) 10 Year Awards

10 employees received it. (4 from Plant, 1 from Quality Assurance, 4 from Marketing and 1 from Human Resource)

3) 20 Year Awards

4 employees received it. (3 from Plant and 1 from Marketing)

4) 25 Year Awards

1 employee from the Marketing Department received it

5) 30 Year Awards

2 employees received it. Both were from Marketing.     

 

 

 Additional Benefits At Warner Lambert ( P-D parent company):

 

Warner-Lambert Company is in the business of making the world feel better. At Warner-Lambert, we take this same philosophy and apply it toward our colleagues. We recognize that comprehensive benefits and flexibility are necessary to meet our colleagues’ changing needs. In addition to medical and dental plans, Warner-Lambert offers an array of special services that help colleagues achieve a comfortable balance between work and personal responsibilities.

 

On-Site Services

 

Fitness Center

The fitness center offers an array of exercise equipment, aerobics classes, fully furnished locker rooms and a professional staff. Colleagues pay a low monthly fee and Warner-Lambert covers the balance of the cost.

 

Summer Hours

 

Summer hours begin the first week in June and last until the first week in September.

Monday tHuman Resourceough Thursday colleagues work an additional 45 minutes each day. On Friday colleagues can begin their day between 6:00-8:00 and can leave between 11:00 and 12:30.

 

 

Medical Center

 

The medical center is an ambulatory care clinic offering comprehensive medical care and is staffed by physicians, nurses, nurse-practitioners, technicians, exercise physiologists and physical therapists.

 

PARDA Federal Credit Union

 

The Credit Union offers savings accounts, promissory certificates, share draft accounts, revolving credit accounts, personal loans and many other services and benefits.

 

1. Child Development Center – Opening September 1999

 

2. Dry-Cleaning Service

 

3. Business Casual Dress

 

Other Benefits Received Immediately Upon Employment

 

Medical Plan

 

Colleague may choose medical coverage for themselves and family members Human Resourceough a variety of plans. These include a health maintenance organization (HMO), a point of service option (POS) and indemnity options with a preferred provider organization (PPO). Deductibles and out of pocket expenses vary by coverage choice.

 

Dental Plan

Plan pays for 100% of preventative and diagnostic expenses with no deductible. Dental surgery, restorative, major restorative and prosthetic services subject to out of pocket expense.

 

Group Life Insurance

 

Life Insurance is payable to your beneficiary. Coverage can range from No Coverage to 5 times annual base earnings.

 

Survivor Income Plan

 

Colleague’s beneficiary receives 25% of monthly base earnings payable to them for 10 years. Monthly payments continue beyond 10 years for beneficiary’s lifetime if beneficiary is dependent spouse who does not remarry.

 

Dependent Life Insurance

 

Life Insurance coverage for colleague’s dependents. Coverage ranges from No Coverage to $2,000 per child and spouse

 

Accidental Death and Dismemberment Insurance

 

Colleague can elect for individual or family coverage. Colleague can choose from No Coverage to $300,000 for themselves or their family members.

 

Long Term Disability Benefits Plan

 

Colleague receives monthly income starting after 6 months of total disability. Colleague can elect no coverage, 55% of base earnings or 66 2/3% of base earnings. Benefits include primary Social Security and Workers’ Compensation benefits.

 

 

Health Care Spending Account

 

This account gives the Colleague the opportunity to pay for eligible health care expenses with tax-free dollars. You can deposit up to $2400 each calendar year from your pay on a before-tax basis. You are then reimbursed from your account for eligible health care expenses not covered by a medical or dental plan. A colleague can enroll              even if they are not enrolled in medical coverage at Warner-Lambert.

 

Dependent Care Spending Account

 

This account gives the Colleague the opportunity to pay for dependent care expenses with tax-free dollars. You can deposit up to $5000 each calendar year from your pay on a before-tax basis. You are then reimbursed from your account when you pay for eligible dependent care that enables you (and your spouse, if you are married) to work.

 

Long Term Care

 

Daily benefit when ongoing custodial care is needed. Colleague can elect no coverage, $60, $75, $90, $105, $120, $135 or $150 per day. Coverage is also available for Colleague’s spouse, parents, and Colleague’s spouse’s parents.

 

Business Travel Accident Insurance

 

Death benefit of 3 times annual base earnings, with minimum benefit of $50,000. This benefit only applies when traveling on Company business. Warner-Lambert pays the full cost.

 

 

 

Vision Care Plan

 

Company pays for membership into the plan. This allows the Colleague to receive discounted prices for lenses, frames and contact lenses.

 

Baby Benefits-Prenatal Program

 

Free, voluntary, confidential prenatal program. It is a resource for questions related to the health of the mother and baby including information on avoiding medical complications and reducing the risks associated with premature birth and cesarean sections.

 

Adoption Program

 

The Company will reimburse eligible expenses up to a maximum of $5000 per child for expenses incurred during public or private adoption.

 

Salary Continuance/ Short-Term Disability

 

Colleague receives a portion of their salary up to 3 months full pay and 3 months partial pay for absence due to illness or accident based on location practice. Physician’s certification is necessary.

 

Colleague Assistance Program

 

Confidential counseling for Colleague and immediate family members for problems that may adversely effect your personal lives. Company pays full costs.

 

Paid Vacations

 

Colleague is eligible for vacation based on location practice

Paid Holidays

 

Colleague is eligible for holidays based on the location practice

 

Scholarship Program

 

Warner-Lambert furnishes scholarships each year to sons and daughters of its U.S. colleagues. Children become eligible by taking the National Merit Scholarship qualifying test during their junior year in high school. You must complete a Warner-Lambert Scholarship entry blank for your child. Winning entrants receive a stipend from the company each year for four years.

 

Educational Assistance

 

Warner-Lambert offers tuition reimbursement or advancement. Approval must be obtained prior to enrolling in the course. Colleagues must pass the course with a grade of “C” or higher.

 

Matching Gift Program

 

Warner-Lambert will double gifts of $100 or more (up to a maximum of 10,000 per year) that you make to an accredited college, university or hospital of your choice. Warner-Lambert will also match gifts of $100 or more (up to a maximum of $1000 per year) to certain non-profit organizations

 

Retirement Plan

A monthly pension at retirement, with a pension for your eligible spouse if you die after becoming vested. Begins January 1 following employment.

 

Savings and Stock Plan

 

Colleague may elect to save between 1% and 15% of their base annual earnings on a before-tax basis, an after tax basis or a combination of both methods. Colleague can choose form 23 investment funds for their savings. Warner-Lambert makes matching contributions on colleague’s savings up to 6%: 35% on before-tax savings and 25% on after-tax savings. An additional Company matching contribution may also be made each year based on growth in the Company’s earnings per share

 

 

7. PROMOTION

 

At Parke-Davis, employees undergo an extensive training program r various stages to make sure that there is a qualified pool of employees available when needed. This saves them time, and psychological costs in searching out the right employee, and then training them for the job. This also boosts employee morale such that employees have a sense of loyalty to the company and are willing to increase their contribution to the company , in return for a promotions from within opportunities.

The company mostly follows the promotion from within policy. These are all merit based promotion. The sped however depends upon :

1. Turnover
2. Vacancies available

 

As far as promotions are concerned, P-D like all other pharmaceutical companies is a slow growth company. The main reason for this is the minimal turnover rate, thus making promotions of a particular level very difficult.

 

 

 

 Promotion Finance Department:

 

One of the main features of promotion over here is that unlike the other departments like Marketing and Human Resources, the employees cannot be rotated or transferred out of this department. This combined with the fact that turnover is very low, makes promotion within this department very unlikely.

 

For instance, the current Finance director has occupied this post for the last 13 years and unless and until he retires, the finance managers working under him cannot be promoted. However, they can be moved to other positions of the same rank .

 

Promotion Marketing and HUMAN RESOURCE Departments:

 

One of the signs of a progressive HUMAN RESOURCE practice is the often used” job Rotation: practices at P-D. This means that the Human Resource department tries to give exposure to all the areas to employees at the managerial level in the marketing and the HUMAN RESOURCE departments . For instance the current marketing director has also worked in the capacity of the HUMAN RESOURCE manager. This is done in accordance with the philosophy that employees should have a good background knowledge of all the departments, the work done, and should have many skills that can be utilized in any related are, when needed. This also has the advantages of relieving boredom and fatigue that an employee may feel in any one part of the organization.

 

 

8. SEPARATIONS:

 

The employee may resign at his own wish and will. Is the company fire a worker, no notice of termination is given. Only one month salary is paid at the time of termination of the services of he employee.

9. UNION PRACTICES AT P-D:

 

Some facts:

1. There is only one manufacturing plant at P-D( SITE area)
2. There are 200 permanent workers
3. Management staff consist of 190 workers
4. 25-50 temporary employees. These are hired for any length of tim, usually between 1 day to 6 months.

 

The union at P-D is quite powerful. The industrial relations manager mainly deals with the unions.

 

The junior level management has close relations with the upper management. Although the management control is high, like any other organization with a proper union, the management also has to compromise.

 

One such instance that had taken place in the recent past was the sudden one-day strike declared by the top management . As a result emergency state was declared by the management and the supervisor were given immediate orders to take over the operations which could not be stopped because of the strike!

 

Typical Union Related Problems Faced:

 

One of the major problems faced by the management regarding union management relations is OVERTIME. The yearly schedule that is given by the top management is to be ideally met within the normal work hours.  This yearly schedule is broken down into quarterly, monthly and finally into weekly schedules. However, the workers stretch their work hours, try to produce less within normal job timings, so that they are able to work overtime and earn additional income.

 

One of the positive points of the union is that it is purely profession-related and although individual employees may have their own personal political preferences, the union as an organization is not politicized.

 

 

10. SAFETY, HEALTH AND ENVIRONMENT (SH& E):

 

Company ahs global standards relating to safety standards. For example: fire equipment, chemical dumping etc. One of the foremost concerns is how to preserve the environment.

 

Since the last 2 years, a new fire system has been installed in accordance with the global standards of Warner Lambert.

 

SH& E of P-D Pakistan strategy has been straightened out with the help of assessment audits by our Corporate Office. This reengineering could not have been performed without total commitment from the top. Our Managing director as Chairman of the Safety Steering Committee is leading from the front. He has created a sense of urgency, since P-D was far behind among other pharmaceuticals in this field.

 

However, the bottom line is , that even with all this technical jargon and the rhetoric, in the end Reengineering of any thing is like any other effort to change the way colleagues work within this facility.