SQUARE LTD.

Introduction

Origin of the report:

Square Limited is the largest corporation in Bangladesh and it has been continuously in the 1 st
position among all national and multinational companies since 1985. They have a reputation
name in pharmaceutical industry of Bangladesh with their Square Pharmaceutical Ltd. for
manufacturing quality medicines for more than four decades. Now they have vast industries
Square Consumer Products Ltd., Square InformatiX Ltd, Square Hospitals Ltd. Incorporated,
Square Textile Ltd. and Square Toiletries Ltd. The company plays a significant role in
producing quality products in Bangladesh. It also plays a vital role in developing the
socioeconomic condition of our country by paying a large amount of tax and taking
participation in social activities. As a part of our study curriculum in BBA course, we have
been assigned to conduct a study on an organization finding management practices followed
by the company. Square was a perfect choice for study because of its different sectors in
business.

Objectives of the report:

To achieve deep knowledge about the organization.

To fulfill the partial requirement of our course of Principles of Management.
To evaluate the management activities of Square Ltd.
To analyze the existing structure, Strategy and planning mechanism, decision-making
process, Human Resource Management systems, Organizational behavioral
environment, Leadership practices, Motivational tools and controlling systems of this
company.

Methodology:
Information used in this paper we collected from related books, journals, periodicals &
annual report etc. We follow the Square the concerned rules & regulation relating to company
systems closely. We also collected information from website.

Limitations:

SQUARE LTD.

There are some limitations that we have faced during preparing the report. The most obvious
limitation is the unavailability of genuine information. Another limitation is lack of available
information source related to this topic. As it is a huge corporation and so many sectors of
industries it was difficult to focus on all the companies. Other limitation is our report is
mostly text based. Also it was difficult to work as a group on this report.

Organizational Profile

SQUARE LTD.

Background:
Square today symbolizes a name a state of mind. But its journey to the growth and
prosperity has been no bed of roses. From the inception in 1958, it has today burgeoned into
one of the top line conglomerates in Bangladesh. Square Group, the flagship company, is
holding the strong leadership position in the industrial sector of Bangladesh since 1958 and is
now on its way to becoming a high performance global player. The company plays a
significant role in producing quality drugs, cosmetics and toiletries and consumer products,
textile sector, data communication service provider and even in health care in Bangladesh. It
also plays a vital role in developing the socioeconomic condition of our country by paying a
large amount of tax and taking participation in social activities.
Square Pharmaceuticals Limited is the largest pharmaceutical company in Bangladesh and it
has been continuously in the 1st position among all national and multinational companies
since 1985. It was established in 1958 and converted into a public limited company in 1991.
The sales turnover of SPL was more than Taka 5 Billion (US$ 90 million) with about 15%
market share (April 2003 March 2004) having a growth rate of about 16%.
SQUARE Toiletries Ltd. started its journey in 1988 with a single product as a separate
division of Square Pharmaceuticals. In 1994, Square Toiletries Ltd. became a Private Ltd.
Company. At present, STL is the country's leading manufacturer of international quality
cosmetics and toiletries with 20 brands and more than 55 products covering a wide range of
categories. Currently STL is employing over 2,000 employees ensuring their consistent
welfare and security.
Square Consumer products Ltd. has started its journey in 2001. Within a short span of time, it
has been able to create a strong foothold in the market through its quality products and
customer services. It has introduced three popular brands in the market namely Radhuni,
Ruchi and Chashi. Radhuni is the flagship brand of the company.
With Square Textile Ltd. Square group steps into the textile sector with establishment of its
first unit in 1997. A year later, step on to its second unit. In the same premises, it established
its third unit on 2000.

SQUARE LTD.

SQUARE Group provides data communication service by their company Square InformatiX
Ltd by setting up a satellite earth station in Bangladesh and providing internet service. Square
also providing health care with their Square Hospital Ltd. established around 2006.

Vision:
Square views business as a means to the material and social wellbeing of the investors,
employees and the society at large, leading to accretion of wealth through financial and moral
gains as a part of the process of the human civilization.

Mission:
Squares Mission is to produce and provide quality & innovative healthcare and services for
people, maintain stringently ethical standard in business operation also ensuring benefit to the
shareholders, stakeholders and the society at large.

Objective:
Squares objectives are to conduct transparent business operation based on market
mechanism within the legal & social frame work with aims to attain the mission reflected by
its vision.

Corporate Focus:
Our vision, our mission and our objectives are to emphasize on the quality of product,
process and services leading to growth of the company imbibed with good governance
practices.

SQUARE Striving For:

Square strives, above all, for top quality health care and consumer products at the
least cost reaching the lowest rungs of the economic class of people in the country.
They value our social obligations.

It owes to its shareholders and strives for protection of their capital as well as ensures
highest return and growth of their assets.

SQUARE LTD.

It strives for best compensation to all the employees who constitute the back-bone of
the management and operational strength of the Company through a pay-package
composing salary/wages, allowances, bonus, profit participation, leave salary and
superannuation & retirement benefits.

It strives for best co-operation of the creditors & debtors the banks & financial
institutions who provide financial support when it need them, the suppliers of raw
materials & suppliers who offer them at the best prices, the providers of utilitiespower, gas & water etc. and the customers who buy its products & services by
redeeming their claim in time by making prompt payment and by distributing proper
product on due dates.

It strives for fulfillment of its responsibility to the Government through payment of

entire range of due taxes, duties, and claim to various public agencies.

It also strives, as responsibilities citizen, for a social order devoid of malpractices,

anti-environmental behaviors, unethical and corruptive dealings.

It strives for practicing good governance in every sphere of activities covering inter
alia not being limited to, disclosure & reporting to shareholders holding AGM in time,
distribution of dividends and other benefits to shareholders, reporting/dissemination
of price sensitive information, acquisition of share by insiders, recruitment &
promotion of staff, procurement & supplies, sale of assets etc. all that directly and
indirectly affect the interest of concerned groups the shareholders, the creditors,
suppliers, employees, government and the public in general.

SQUARE LTD.

PLANNING

Decision making procedure:

Square Group follows a systemic way to take a particular decision. Based on the present &
previous available data and information the decision is made, focusing & predicting the
future consequences. Plans have different alternatives in order to improve future
performance. The respective managers of different departments/divisions scrutinize those
plans and best of them are placed to the Management for approval through Merits & demerits
of particular proposals/plans are observed by the management of the company to reach to a
single decision. This decision is also important to develop the strategy for the long term
benefit of the Square. Decision making process includes

Identification of the problem

Developing alternatives for the solution of problem

Analyzing alternatives

Selecting an alternatives

Implementing the Alternatives.

Sometimes the management also takes help from the technical experts in the relevant
field. The day to day planning and decision making is mainly directed by the head of
each department & decision.

Planning is a very important tool for every organization. Planning involves defining the
organizations goals, establishing an overall strategy for achieving those goals, and
developing a comprehensive set of plans to integrate and coordinate organizational work.
Square also makes a several types of plans to achieve their organizational goal

Long term plan:

Square makes long term plans which cover more than three years. Such as, Square Increases
its production more than 30% within two years.

Short term plan:

Square makes some short term plans which cover less than one year. They make several types
of short term plan. Such as, they decide they will increase their sales volume 10% within 6
months.

SQUARE LTD.

Specific plans:
Square ltd. Make some specific plan which are clearly defined and that leaves no room for
interpretation. They make several types of specific plans. Such as give order to the general
manager of production to increase production 20%.

Directional plan:
Square ltd. Also make directional plans which are flexible and set out general guidelines.
Such as they sometimes set plan to increase revenue by 5 to 10 percent over the next 6
months

Strategy and Planning Mechanism:

The strategy and planning Mechanism of Square is not different from other organizations
strategic planning process. The Planning mechanism involves focusing on the goal and
developing the overall strategy for achieving the goal. Strategy involves long term decision
making to get a long term benefit. While developing the strategy it considers its mission and
objective. Based on these two, the current situation is analyzed. Considering all these things
the long term the strategy is developed to have the best output. After developing the strategy,
the activities required to implement the strategy is designed. In addition to the development
of functional policies, a required resource is identified. After the implementation of the
strategy the result is measured and evaluation is done by the management bodies. If any
change is required, the strategy is modified time to time.

SQUARE LTD.

ORGANIZING
Structure of the Organization
The formal arrangement of jobs within an organization is the structure of an organization.
Square divides works to be done into specific jobs and departments, assign tasks and
responsibilities associated with individual jobs, coordinate diverse organizational tasks,
clusters jobs into units, establish relationship, formal lines authority, allocates and deploys
organizational resources.

Departmentalization:
The basis by which jobs are grouped together is known as departmentalization. Square has
established functional structure of organization. The various functions of the undertaking are
first determined and then a functional expert in each is appointed, who will be responsible for
his technical function. Square Ltd has established the following department for his smooth
running.

Planning department:
After getting production order from merchandising dept. they analyze the production order &
rearrange the orders as per delivery schedule. Then distribute the production order to
respective dept. & take delivery schedule. The planning dept. always update production order
& inform merchandising dept. about the order status. If any deviation found then they call
meeting with respective dept. & help to come out.

Production department:
After getting production order with ready for delivery schedule then analyze the order &
planning as self-dept. Related all technical process prepare and supply in floor and produced
as per buyer requirements. Store & lab related all activities completed by production
department.

SQUARE LTD.

Finance department:
This department determines the required fund, calculates the cost of each source, and finally
collects the required fund from the minimum cost source.

Human resource department:

HRD involves planning, recruiting, selecting, orienting, training & developing human
resources in the organization. In order to improve productivity of human input, the Company
continuously provides formal and informal training to the employees at every echelon of
operation and management. During the year under review 2,144 persons received inhouse/in
operation/on the job training at home and abroad which will ultimately make great
contribution to the Company's profitability as well their own remuneration in due course.

Accounts department:
They maintain companies
Proper books of accounts.
Budgetary control, matters relating to statutory audit and corporate tax matters.
Prepare of periodic financial statements as prescribed in the applicable act, rules and
relevant laws.
Budget preparation and control.
Dealing with banks and financial institution in negotiating terms and condition of
short term and long term investment.
Directing company short and long term business plan.
Developing and implementing companys financials plans and policies.
Preparation of monthly, quarterly, half yearly and annual management reports on
accounts including analysis of variances.

Purchasing department:
Taking all positive steps to purchase as company requirements but sometime raw materials
purchasing is not up to the mark quality.

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SQUARE LTD.

Job analysis:
Square has effective practice for job analysis. In working process all related people confirm
jobs and behaviors necessary to perform them .But job analysis by English is difficult to
understand for workers.

Job specialization:
The degree to which tasks are divided into separate jobs is also known as division of labor. In
this organization every employee has job specification but all jobs are not specialized
according to employees skill, abilities, performance & experiences.
Span of control:
The number of employees a manager can efficiently & effectively manage is refer to as span
of control. In Square wider span is in production department. As a result it is more efficient in
terms of cost but less effective. Other departments have been reached to a limited range.
When the span becomes too large, employee performance suffers because managers no
longer have the time to provide the necessary leadership and support. Larger span of control
are consistent with managers efforts to reduce costs, speed up decision making, increase
flexibility, get closer to customers and empower employee.

Hierarchy:
In Square has a system of hierarchy. From top level management to lower level workers are
Organized in hierarchy, each lower level one is being controlled and supervised by higher
level one in every department.

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Human Resource Management

Human Resource department plays an important role to develop the most efficient manpower
for the Square. Skilled, efficient, dynamic manpower is one of the most desirable features of
this organization. For this aspect HRD recruited the perfect one by giving advertisement in
different Daily newspapers and taking written test and take written test and also viva voce
exam. To have the best product of the newly appointed personnel, it also has the training
division.

Recruitment:
The recruitment process is structured in a way that the highly qualified persons like to
compete. In the recruitment process HRD mainly focused on the spirit, abilities, skill,
experience, intention and skill to perform the assigned job efficiently so that the goal of the
organization can be achieved.

Advertisement for the recruitment of a particular post:

For the recruitment and selection of employees of the Square Pharmaceuticals Ltd.
advertisement process through the Dailies is maintained. This advertisement carries the
necessary requirement of the candidates for the particular post as well as the address and the
last date to apply.
Interview & selection:
After the advertisement, a certain number of candidates is selected for the written test at a
particular day. After this written test the selected candidates also has to face the viva. After
the viva, a selection is made for based on the skills, educational background, experience,
smartness and the overall performance & the selected ones get appointment letters.
Training & development:
To get the best output and to materialize the employees this organization maintains a training
division. Anyone requiring specific training gets the training facility to develop the best in
him. Newly appointed ones are mostly under this consideration.

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SQUARE LTD.

Appraisal:
The superior ones observe the performance of the immediate officials working under his
close direction. Based on the recommendation and report of the superiors HRD prepares
promotion, bonus. Square provides incentives to the employees who exert extra efforts to his
job. The incentive criteria may in the form of an increment at the end of the year. Some basic
salaries pay to those employees which motivate the employee concern very much.

SQUARE LTD.

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LEADING
Motivating employees:
Every organization conducts its activities and achieves success by using the effort of its
employees. Man is power. So this power must be utilized. Every organization takes different
initiatives so that the employees can perform their jobs efficiently and effectively.
Organizations motivate its employees and influence them so that they can do their best
working in full swing. Organizations also provide training to increase quality level of
employees.
Square is one of the top-notch companies in Bangladesh. It has created sources of
employment as well as it is also committed to keep rights of the employees. Square has taken
different initiatives so that employees be motivated and do their best for accomplishing the
goal of the company. The motivational tools the Square uses are given below:
Square motivates its employees by meeting their physiological needs, providing job
security and other facilities.
It motivates its employees by providing the opportunity of achievement. It provides
its employees with the opportunity of developing their career quickly. A medical
representative can be promoted quickly in the post of field manager, then in the
administrative officer etc.
As the higher posts of Square contain higher power, the company motivates its
employees by encouraging them to show a better performance and achieve the power.
As Square provides the opportunity of research, an employee can research for
inventing new drugs and be renowned in the country and abroad.
Square has created stuff provident fund for the future financial benefit of the stuffs.
The company has an unfunded gratuity scheme which is known as Employees
Retirement Gratuity. Under this scheme employees get the benefit depending on the
length of service.
Square has a group insurance scheme for its permanent employees.

SQUARE LTD.

14

Square has also created workers profit participation fund and welfare fund. This
company makes a regular allocation of 5% on net profit before tax to this fund and
payment is made to workers as per provisions of the company's profit according to the
Workers Participation act, 1968.
It gives festival bonuses in every Eid and other religious occasions of the employees
of different religion.
It also gives bonuses when sales representatives fulfilled their sales goals.
Incentive bonus is given depending on the profitability.
Special remuneration is given if a certain target is fulfilled within a certain period of
time.
The incentive criteria may in the form of an increment at the end of the year.
Square arranges annual reward giving ceremony for best sales representative.

Leadership Practices:
Leadership is the process of influencing a group toward the achievement of goals. As a
successful company, Square Pharmaceuticals Ltd. practices leadership in its organization for
moving the whole organization towards its goals.
For properly influencing the employees it provides its leaders i.e. managers with different
types of powers, such as legitimate power, coercive power, and reward power. Its leaders can
give orders to employees, praises them and discipline those who violate the company rules
and regulations.
The leaders in the Square are characterized by high level of credibility and trustworthiness.
They are admired by their subordinates and they can inspire their subordinates. The proof of
this is the increased productivity of Square workers than that of workers of its competitors.
The employees of Square trust their leaders i.e. they are willing to be vulnerable to the
leaders actions because most of their leaders have the excellence of integrity, competence,
consistency, loyalty and openness.
Squares managers provide their employees with morale that make them ambitious and
successful. Square also empower the employees i.e. increase the decision-making discretion
of employees. It empowers its medical representatives for taking instant decision for
convincing doctors and medicine sellers.

SQUARE LTD.

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CONTROLLING
Controlling Process:
In todays competitive global market place, managers want their organizations to achieve
high level of performance by ensuring the effectiveness of the work activities. The
managerial function of controlling is the measurement and correction of performance in order
to make sure that enterprise objectives and the plans devised to attain them are being
accomplished. In broader sense the process of monitoring work activities to ensure that they
are being accomplished as planned and of correcting any significant deviations between the
actual performance and the standards for the performance established.

Approaches followed by Square to designing Control System:

There are three different approaches to designing control system have been identified:
market, bureaucratic, and clan.
Market Control:
Square uses Market Control which is an approach to control that emphasizes the use of
external market mechanisms, such as price competition and relative market share, to establish
the standards used in the control system. By using market control, Square turned its divisions
into profit centers and evaluated by the percentage of total corporate profits each contribute.
Typically used by organizations whose products or service are clearly specified and distinct
and that face considerable marketplace competition.

Bureaucratic Control:
As Square is a very large company it also uses Bureaucratic control which is an approach to
control that emphasizes organizational authority and relies on administrative rules,
regulations, procedures, and policies. It is based on strict hierarchical mechanisms.

Clan Control:
Square also uses Clan control is an approach to control in which employee behavior is
regulated by the shared values,

norms, traditions, rituals, beliefs and other aspects of the

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SQUARE LTD.

organizations culture. It is dependent on the individual and the group (or clan) to identify
appropriate and expected behaviors and performance measures.

The Control Process:

As controlling is a continuous process, Square follows a three step process for controlling:
measuring actual performance, comparing actual performance against a standard, and taking
managerial action to correct deviations or inadequate standards.

Measuring the actual performance:

At first Squares managers measure the actual performance of the workers. There are four
sources of information frequently used by managers to measure actual performance. Four
sources consist of personal observations, statistical reports, oral reports and written reports of
the organization.
Comparing the actual with standard:
The second step of the controlling process named comparing step determines the degree of
variation between actual performance and the standard.

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SQUARE LTD.

Taking managerial Action:

In this step Squares managers take necessary actions if there is any variation between Actual
and standard performance. There are three possible courses of action for managers. They can
do nothing; they can correct the actual performance, or they can revise the standards when
they can realize that the variance was a result of an unrealistic standard; that is the goal may
have been too high or too low.

Tools used by Square for Controlling Organizational Performance

Since organizations performance depends upon proper controlling, Square uses different tools
for controlling its performance. These are given below
The most desirable type of control feed forward control prevents anticipated problems since it
takes place before the actual activity. Concurrent control takes place while work activity of
the organizing is in progress and feedback control takes place after a work activity is done.
Besides these three controlling tools Square also uses some other tools of controlling such as
financial controls including ratio analysis and budget analysis, economic value added(EVA)
and market value added(MVA) , balanced scorecard and information controls.

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Operations and Quality Control

The design, operation, and control of the transformation process that converts resources into
finished goods or services is called operation management.. In Square Pharmaceuticals Ltd.
the operations system includes inputs such as-People, Technology, Capital, Equipment,
Materials, Information and the outputs are- goods, Service by transformation process.
Effective control systems tend to have certain characteristics in common. The importance of
these qualities varies with the situation. Although effective control systems provide
guidelines, their validity is influenced by situational factors. Different situations/factors may
require different control system. These factors include the size of the organization, ones
position and level in the organization hierarchy, degree of decentralization, organization
culture and importance of an activity.
Nowadays Square Pharmaceuticals Ltd. acquired a desirable and a leading position among
the other companies of Bangladesh. This company mostly carries the qualities that are
required for the effective control system. Furthermore, its able to take necessary steps
considering the various factors like size, culture, importance of activities etc. to have the
desirable and effective control to ensure the quality of the management of operation.
Improving productivity management followed Plan for the long-term future.
Establish statistical control over production process and require suppliers to do so as
well.
Deal with the best and fewest numbers of suppliers.
Find out whether your problems are confined to particular parts of the production
process or stem from the overall process itself.
Train workers for the job that are asking them to perform.
Drive out fear.
Encourage departments to work closely together rather that to concentrate on
department or divisional distractions.

SQUARE LTD.

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Analysis
A comparison of strengths, weakness, opportunities and threats is normally referred to as
analysis. Every organization over the years of its operation generates some strength and some
weaknesses which are solely internal and not dependent on the externalities. Opportunities
and threats are on the contrary out of control of an organization and thus absolutely external.
Square has many things to its credit as strengths while like any other company in the same
company has some weaknesses. Square is always abreast of the market trend and proactive to
adopt any market changes and explore opportunities.

Strengths:
Strengths are activities that an organization does well or any unique resources that it has. The
strengths of Square are:

Excellent quality of product

Dynamism

Dynamic products

High tech machineries.

Skilled technical person.

Less worker migration

Goodwill in market.

Strong sales network

Weaknesses:
Weaknesses are activities that an organization doesnt do well or resources it needs but
doesnt possess. The weaknesses of Square are:

A weak advertising system

Cant produce all the products required.

Sometime owners relative employee act as a disturbance employee.

Cant export products in all the countries in the world.

Need to import most of the raw materials

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Opportunities:
Opportunities are positive trends in the external environmental factors. The opportunities of
Square are:

Organization has a strong goodwill in the Europe and America.

On line information system. So, Internet base can help the customers to see their
information from their home personal computer.

Customers trust its products.

It has a vast network of suppliers.

Govt. rules and regulations are slack on the pharmaceutical sector.

Threats:
Threats are negative trends in the external environmental factors. The threats for Square are:

Large volume buyer will not be come due to unexpected political unrest.

Grow up competitor with most modern machineries.

Lack of skilled workers in the industry.

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SUMMARY
Square is one of the dominating companies in Bangladesh. It has been operating its business
operations successfully in different sectors by its long time experience and strong
management process. By its skilled human resource, well defined plan, definite goal and
strong leading process it becomes a leading company in Bangladesh. The company plays a
significant role in producing quality drugs in Bangladesh. It also plays a vital role in
developing the socioeconomic condition of our country by paying a large amount of tax and
taking participation in social activities. Square leads its employees in such a way that they
help organization achieve its goals. It also controls its employees work activities for
improving their work performance. It also controls the quality of its products for preserve its
existing goodwill in the market. In a word Square follows good practices of management in
its corporate world for remaining in the top position in Bangladesh.

CONCLUSION
Square Group is established from conventional method to modern method by his
management policy and better effort of employees. Day by day it will be expanded by getting
more profit. For better management policy within short time Square acquired a leading
position in Bangladesh. This organization is much more effective than others to identify the
weakness it carries as well as to solve them very effectively. It follows a strong management
system so that it can maximize its target. For availability of labor & quality of product this
organization as well as Bangladesh will dominate over competitor in global market.

SQUARE LTD.

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References

1.
2.
3.
4.

en.wikipedia.org/wiki/Square
www.thesquaregroup.com
www.squarepharma.com.bd
textile.squaregroup.com