Company Analysis Report 2018 - 20

Title of the Project: To Study Various HR Practices

Submitted by: Devanshi Goswami

Name of Faculty Guide: Dr. Snigdharani Mishra
Designation : Professor Roll No.: PGDM-182022211
Programme: PGDM(HRM)
Batch : PGDM-HRM 2018-20

Institute for Technology and Management

Plot No. 25 / 26, Institutional Area,
Sector – 4, Kharghar, Navi Mumbai
 CERTIFICATE FROM THE FACULTY GUIDE

This is to certify that the Project Work titled___________________

________________________________________________ (title) is a bonafide work carried

out by Mr / Ms ________________________________________________ (name of the
Student) Roll No. ______________________, a student of PGDM program 2018 – 2020 of

The Institute for Technology & Management, Kharghar, Navi Mumbai under my
guidance and direction.

Signature of Guide: __________________________

Name of Guide: ____________________________

Designation: __________________________

Date: _____________ Place: ________________

 INDEX

SERIAL NO CONTENTS

1. INTRODUCTION-
1.1  Introduction to the Sector

1.2  Sector overview

1.3  Contribution to GDP

1.4  Domestic and foreign competition

1.5  Govt. regulation/Regulation of the sector

1.6  Industry trends

1.7  Products , customers and processes

1.8  Strategic Perspective

1.9  Research & Development

1.10  Sectoral growth

 Intro. To the company / SWOT, PESTLE And BCG

1.11
Matrix.

1.12  Objective of the study

2 LITERATURE REVIEW

2.1  HR practices-its purpose and gaps

 Rao study on HR practices
2.2  Dhar study on HR practices and gaps
2.3

3 RESEARCH METHODOLOGY

3.1  Research design

 Methods of collection of data
3.2  Methods of representation of data
3.3
 1. INTRODUCTION

1.1 INTRODUCTION OF THE SECTOR

The Indian Pharmaceutical industry is the second-largest in the world by volume and is
leading the manufacturing sector of India .

The Indian bio-tech industry has achieved a growth rate of 17 percent and has gained
revenues of Rs.137 billion ($3 billion) in the 2009-10. Bio-Pharmaceutical was the biggest
contributor generating 60 percent of the industry's growth at Rs.8, 829 crore , followed by
bio-services at Rs.2, 639 crore and bio-agriculture at Rs.1, 936 crore.

Health is defined both as cause and effect of economic development, and the pharmaceutical
industry is especially recognized in the , UN Millennium Development Goals‟ as an actor
that can contribute to economic development. This industry is classified as one of the most
high-tech and capital intensive industries.

It is considered as the , life line ‟industry because its products play a crucial role in
remedifying the suffering of diseased persons. It is also significant contributor to the strength
of any economy by creating jobs for millions and contributing to the export earnings. The
distinctive feature of this industry is such that the goods produced by this sector can neither
be substituted nor replaced.

1.2 OVER VIEW OF THE SECTOR

Pharmaceutical industry contributes to the welfare of humanity and provides significant

socio-economic benefits to the society through creation of jobs, supply chains and
community development.

Indian Pharmaceutical industry is one of the world’s largest and most developed, ranking
fourth in terms of volume and thirteenth in terms of value. The country accounts for an
estimated 10% of global production and 2% of world markets in pharmaceuticals.
It has over the years made significant progress in infrastructure development, technical
capability and hence produced a wide range of pharmaceutical products.

The industry now produces bulk drugs under all major therapeutic groups. It has a sizable
technically skilled manpower with prowess in process development and downstream
processing. It has the capital investment of about US$4.1billion. It produced bulk drugs of
value of US$3.5 billion and formulations worth US$15.4billion in 2008. Bulk drugs have
grown at a rate of approximately 14%, and formulation by 24% in the nineties. There is an
increasing interest and investment in R&D. It provides employments 29 million people.

1.3 CONTRIBUTION TO GDP

The contribution of pharmaceutical sector in India's GDP is 2% and 12% of manufacturing

sector GDP. diseased persons. It is also significant contributor to the strength of any economy
by creating jobs for millions and contributing to the export earnings. The country accounts
for an estimated 10% of global production and 2% of world markets in pharmaceuticals.
 1.4 DOMESTIC & FOREIGN COMPETITION

DOMESTIC COMPETITION
The market structure of the Pharma industry in India, is reflected in the number of firms, their
relative sizes, size of the largest firms, the concentration of firms in the industry, price cost
margin, barriers to entry, the pattern of entry and exit of the firms, import competition, export
intensity, the merger and acquisition activities, amount of foreign inflows in the industry, the
composition of players (domestic and foreign), research and development activity, advertising
and marketing activities.

According to the First Pharmaceutical Manufacturing Census of India, reported in the Annual
Report of the Department of Pharmaceuticals 2010-11, there were 10,563 Pharma
manufacturing units in India, comprising 8174 producing formulations and 2389 producing
bulk drugs. This figure would overstate the degree of competition, as a firm or an ownership
unit may own or control several manufacturing units and also the formulations and bulk
drugs do not compete in the same market. In fact, within each category, competition is within
distinct therapeutic segments and within particular classes of medications that are perfectly or
imperfectly substitutable for each other.

The Prowess data base covers about 600 Pharma manufacturers in India, these are the
relatively larger firms. Although they contribute a declining share of the industry’s sales, their
contribution has been over 80 percent in recent years. This figure is arrived at by comparing
the total sales of the Prowess firms with total industry production106 as reported by the latest
(2012) Annual Publication of the Indian Drugs Manufacturers Association (IDMA).

The divergence is illustrated in Figure and the measures of market concentration is taken to
arrive at this figure that is computed below.
 Source : Computed using data from CMIE Prowess and IDMA

The Indian pharmaceutical industry’s typical feature is extreme fragmentation with

concentration at the top. It comprises of a very large number of small firms and a small
number of large firms. This might suggest that the industry is fairly competitive, but such a
conclusion is flawed. This is because the actual competition takes place at the level of
therapeutic segments. In a particular segment, there might actually be high concentration of a
few firms.

THE MAJOR INDIAN PHARMACEUTICAL COMAPNIES

Company Profit (per cent)

Ranbaxy Labs 167.2
Dr. Reddy’s Labs 65.8
Cipla 5.2
Nicholas Piramal 473.9
Sun Pharma 35.8
Lupin 26.8
Cadila Healthcare 66.4
Torrent Pharma 313.7
Glenmark 74.5
Bioco 26.1
 FOREIGN COMPETITION

The United States, unlike many other industrialized nations, does not regulate the price of
pharmaceutical products directly. There are advantages to this approach. The U.S. generic
market is one of the most dynamic and cost-effective in the world due to competition between
manufacturers. The inventor of a socially valuable patented drug may charge high prices in
the U.S. market, and the ensuing profit incentivizes innovation that benefits consumers.
Subsequent competition between substitute therapies, even those on patent, can push down
these prices over time. Generic entry after patent expiration pushes down prices even further.
This form of price discipline, generated by market forces, rewards the attributes and
efficacies that consumers want. For example, if a particular drug is differentiated from its
competitors in a useful way, it will be able to command a higher price.

Prices that reflect value create exactly the incentives society desires for innovation. If the
forces of competition are always strong, then the way for a pharmaceutical company to earn
high profits is to invent a valuable treatment. If competitive forces weaken, then high prices
for drugs may not reflect value but instead a lack of market discipline, sometimes
exacerbated by regulations that enable or maintain high prices. When manufacturers can earn
high profits by lobbying for regulations that weaken competition, or by developing
mechanisms to sidestep competition, the system no longer incentivizes the invention of
valuable drugs. Rather, it incentivizes firms to locate regulatory niches where they are safe
from competition on the merits with rivals. The U.S. system performs well when competitive
forces are strong, as this yields low prices for consumers as well as innovation that they
value.

1.5 REGULATION OF PHARMA INDUSTRY

Pharmaceutical regulations across the world play an important role in ensuring the safety and
efficacy of the approved drugs. They not only regulate the pricing of drugs but the quality as
well. The regulations are required both for new innovations and already existing products, in
order to improve health status. Both products which are produced domestically and those
imported from other countries require regulation. Every country has its own regulations
which apply to innovation, manufacturing, drug testing, marketing, and post marketing
studies. The aim is to maintain the standards of the drug at every step to cater for the patient
population of each country.

Indian Regulations & Guidelines:

Central Drugs Standard Control Organization (CDSCO),

Ministry of Health & Family Welfare, Government of India
CDSCO
provides general information about drug regulatory
requirements in India.
Drugs (Price Control) Order 1995 and other orders enforced by
National Pharmaceutical Pricing Authority (NPPA),
NPPA
Government of India. View the list of drugs under price control
here.....

The Drugs & Cosmetics Act, 1940 regulates the import,

D & C Act, 1940
manufacture, distribution and sale of drugs in India.

Schedule Mof the D&C Act specifies the general and specific
requirements for factory premises and materials, plant and
Schedule M
equipment and minimum recommended areas for basic
installation for certain categories of drugs.

Schedule T of the D&C Act prescribes GMP specifications for

Schedule T
manufacture of Ayurvedic , Siddha and Unani medicines.

The clinical trials legislative requirements are guided by

Schedule Y
specifications of Schedule Yof The D&C Act.

The Ministry of Health, along with Drugs Controller

General of India (DCGI) and Indian Council for Medical
Research (ICMR) has come out with draft guidelines for
GCP guidelines
research in human subjects. These GCP guidelines are
essentially based on Declaration of Helsinki, WHO guidelines
and ICH requirements for good clinical practice.

The Pharmacy The Pharmacy Act, 1948 is meant to regulate the profession of
Act,1948 Pharmacy in India.
The Drugs and
The Drugs and Magic Remedies (Objectionable
Magic Remedies
Advertisement) Act, 1954 provides to control the
(Objectionable
advertisements regarding drugs; it prohibits the advertising of
Advertisement)
remedies alleged to possess magic qualities.
Act, 1954
The Narcotic
Drugs and The Narcotic Drugs and Psychotropic Substances Act, 1985 is
Psychotropic an act concerned with control and regulation of operations
Substances relating to Narcotic Drugs and Psychotropic Substances.
Act, 1985

IMPORTANT INTERNATIONAL GUIDELINES & REGULATORY

BODIES

WHO guidelines on medicines policy, intellectual property

rights, financing & supply management, quality & safety,
O (Medicines)
selection & rational use of medicines, technical co-operation
and traditional medicines.

WHO guidelines on all areas relevant to health of people all

WHO sites
over.

International Conference on Harmonization of Technical

Requirements for the Registration of Pharmaceuticals for
ICH Human Use (ICH) guidelines defining quality, safety, efficacy
& related aspects for developing and registering new medicinal
products in Europe, Japan and the United States

Organization for Economic Collaboration and Development

OECD including 30 member countries covers economic and social
issues in areas of health care.

European Medicines Agency (EMEA), a decentralised body

of the European Union headquartered in London, prescribes
EMEA
guidelines for inspections and general reporting and all aspects
of human & veterinary medicines in the European Union.

Regulations, guidelines, notifications, news and

US FDA
communications from US Food and Drug Administration.
 Specifications regulating medicines, medical devices, blood,
TGA tissues & chemicals, issued by Therapeutic Goods
Administration, the Australian regulatory body.

South Africa The department of Health, South Africa.

News, resources, documents and publications of the World

WTO Trade Organization (WTO), the global international
organization dealing with the rules of trade between nations.

Collection of international food standards and guidelines for

Codex processed, semi–processed and raw foods, adopted by the
Alimentarius Codex Alimentarius Commission under the Joint FAO /
WHO Food Standards Programme.
News, warnings, information and publications of Medicines
and Healthcare products Regulatory Agency (MHRA),
MHRA
responsible for ensuring efficacy and safety of medicines and
medical devices in the UK.

Advisories, warnings, recalls, reports, publications, activities,

Health Canada legislations and guidelines from Health Canada, the Federal
Department responsible for health related issues in Canada.

Thai Food and Drug Administration laws and regulations

Thai FDA
with respect to drugs, food, cosmetics and narcotics.

Health Sciences Authority (HSA), the regulatory body of

HSA, Singapore
Singapore.

DOH, Philippines The Department of Health, Philippines.

Medsafe, Medsafe, New Zealand Medicines and Medical Devices Safety

New Zealand Authority.

Regulatory information, news and publications of National

NPCB, Malaysia
Pharmaceutical Control Bureau, Malaysia.
 Guidelines and useful information to ensure safety, efficacy and
DGMP, Belgium quality of medicines, issued by Directorate-General
Medicinal Products, Belgium.

Licensing and registration guidelines for medicinal products

BfArM, Germany laid down by Federal Institute for Drugs and Medical
Devices, Germany

SwissMedic Swiss regulatory agency for therapeutic products.

Regulatory and surveillance guidelines issued by Medical

MPA, Sweden
Products Agency, Sweden.

News, regulations and guidelines issued by The National

NAFDAC,
agency for Food Administration and Control (NAFDAC),
Nigeria
Nigeria.

1.6 INDUSTRY TRENDS

The pharmaceutical sector was valued at US$ 33 billion in 2017. The

country's pharmaceutical industry is expected to expand at a CAGR of 22.4 per cent over
2015–20 to reach US$ 55 billion. ... The country accounts for around 30 per cent (by volume)
and about 10 per cent (value) in the US$ 70-80 billion US generics market. The graphical
representation of the Compounded Annual Growth Rate (CAGR) over past 5 years can be
seen below :
 1.7 PRODUCTS,CUSTOMER&PROCESSES

PRODUCTS

The range of products offered by the companies under the Pharmaceuticals sector in India :
a) Cardiovascular
b) Children’s Health
c) Dermatology & Cosmetology
d) Diabetes
e) Hepatitis
f) HIV/AIDS
g) Infectious Diseases & Critical Care
h) Neurosciences
i) Oncology
j) Ophthalmology
k) Respiratory
l) Urology
m) Women’s Health
n) Devices

CUSTOMER
The pharmaceutical industry functions just like any other industry. It has raw
materials manufacturers, finished goods manufacturers, R&D (research and
development) companies, marketing companies, and consumers. Yet, it is far more
regulated and capital-intensive than other industries. The supply chain of the
pharmaceutical industry is similar to that of any other industry in the manufacturing
sector. Because pharmaceuticals directly affect millions of people’s health,
industry manufacturers are very strict about ensuring the safety and quality of drugs at
each level of the supply chain. These companies use fixed, regulator-certified
suppliers of raw materials. Companies also store the raw and packaging materials
in separate warehouses. After a company processes the raw materials, it makes the
final drug at the manufacturing unit. A company that has a single manufacturing unit
uses only one warehouse, while a company with multiple manufacturing units stores
its drugs in central and regional warehouses.
Next, distributors and super stockiest receive the drugs and supply them to entities in the
retail segment:

 Hospital

 Pharmacy stores

 Health care centers

 Clinics

Then, retailers sell OTC drugs directly to consumers. A prescription drug purchase
requires authorization from a qualified doctor.

PROCESSES
Drug manufacturing is the process of industrial-scale synthesis of pharmaceutical drugs by
pharmaceutical companies. The process of drug manufacturing can be broken down into a
series of unit operations, such as milling, granulation, coating, tablet pressing, and others.

 Unit operations

1. Formulation and pre-formulation development

Before a drug can be manufactured at any scale, much work goes into the actual
formulation of the drug. Formulation development scientists must evaluate a compound
for uniformity, stability and many other factors. After the evaluation phase, a solution
must be developed to deliver the drug in its required form such as solid, semi-solid,
immediate or controlled release, tablet, capsule .

2. Powder blending

In the pharmaceutical industry, a wide range of excipients may be blended together to

create the final blend used to manufacture the solid dosage form. The range of materials
that may be blended (excipients, API), presents a number of variables which must be
addressed to achieve products of acceptable blend uniformity. These variables may
include the particle size distribution (including aggregates or lumps of material), particle
shape (spheres, rods, cubes, plates, and irregular), presence of moisture (or other volatile
compounds), and particle surface properties (roughness, cohesivity).

3. Milling

During the drug manufacturing process, milling is often required in order to reduce the
average particle size in a drug powder. There are a number of reasons for this, including
increasing homogeneity and dosage uniformity, increasing bioavailability, and increasing
the solubility of the drug compound.

4. Granulation

Granulation can be thought of as the opposite of milling; it is the process by which small
particles are bound together to form larger particles, called granules. Granulation is used
for several reasons. Granulation prevents the "demixing" of components in the mixture,
 by creating a granule which contains all of the components in their required proportions,
improves flow characteristics of powders (because small particles do not flow well), and
improves compaction properties for tablet formation.

5. Hot melt extrusion

Hot melt extrusion is utilized in pharmaceutical solid oral dose processing to enable
delivery of drugs with poor solubility and bioavailability. Hot melt extrusion has been
shown to molecularly disperse poorly soluble drugs in a polymer carrier increasing
dissolution rates and bioavailability. The process involves the application of heat,
pressure and agitation to mix materials together and 'extrude' them through a die. Twin-
screw high shear extruders blend materials and simultaneously break up particles. The
resulting particles can be blended and compressed into tablets or filled into capsules.

1.8 STRATEGIC PERSPECTIVE

OPPORTUNITIES FOR THE INDIAN PHARMACEUTICAL SECTOR

The main opportunities for the Indian pharmaceutical industry are in the areas of:
• Generics (including biotechnology generics)
• Biotechnology
• Outsourcing (including contract manufacturing, information technology (IT)and
R&D outsourcing).

1) GENERICS
Prescription drugs worth $40 billion in the U.S. and $25 billion in Europe are due to lose
patent protection by 2007-08. Indian firms will likely take around 30 percent of the
increasing global generics market, the Associated Chambers of Commerce and Industry of
India (Assocham) forecast. Currently, the Indian industry is estimated to account for 22
percent of the generics world market. Low production costs give India an edge over other
generics-producing nations, especially China and Israel. It will be easier for Indian firms to
win larger generics market shares overseas than at home, particularly in the U.S. and
Europe .Indian drug manufacturers currently export their products to more than 65
countriesworldwide.14 Their largest customer is the U.S., the world's biggest pharmaceutical
market. The use of generic drugs is growing quickly in the U.S. due to cost pressure by
payers and the introduction on January 1 this year of the Medicare Part D prescription
benefit, giving seniors and people with disabilities prescription drug coverage for the first
time. With 74 facilities, India has the largest number of U.S .Food and Drug Administration
(FDA)- approved drug manufacturing facilities outside the U.S. Indian firms now account for
35 percent of Drug Master File applications an done in four of all U.S. Abbreviated New
Drug Application (ANDA) filings submitted to the FDA. Analysts at Credit Lyonnais
Securities Asia say they expect the number of generic drug launches by Indian companies in
the U.S. to increase from 93 in 2003to over 250 by 2008.

2) BIOTECHNOLOGY
In 2003-04, biopharmaceuticals accounted for 60 percent of India's total biotechnology
market, which was worth an estimated $709 million-up 39 percent over the previous period.
Investment in the sector was up 26 percent to $137 million-and exports accounted for 56
percent of industry revenues. The domestic biopharmaceuticals sector grew 38.5 percent and
had the largest local market share, at76 percent, followed by bio-agriculture at 8.4 percent,
bio services at 7.7 percent, and industrial products at 5.5 percent and bio-informatics at 2.5
percent. With 200 biotech companies and total revenues of $500 million annually, India's
Biotechnology sector is still in the relatively early stages of development. However, it is
growing fast, with an initial emphasis on vaccines and bio services. The industry is situated
mainly in Karnataka, although there are operations in Andhra Pradesh, Hyderabad, Kerala,
Maharashtra and West Bengal. The top 10 players in terms of revenues in 2004 were Biocon ,
Serum Institute of India, Panacea Biotec , Nicholas Piramal, Novo Nordisk, Venkateshwara
Hatcheries, Wockhardt , GSK, Bharat Serums& Vaccines, and Eli Lilly & Co, reports Burrill
& Co, the U.S.-based life sciences merchant bank. As is generally the case worldwide, most
biotech companies in India have developed along the contract or collaborative research
models.

3) OUTSOURCING

I. IT Outsourcing
India's status as an information technology superpower, with access to specialist skills and
24/7 work hours, is a huge advantage as it strengthens its position as the destination of choice
for contract research, including drug discovery. Eighty-two percent of U.S. companies overall
rank India as their first-choice IT outsourcing destination, says leading international clinical
research organization Chiltern International, adding that IT and IT enabled services (ITES)
companies have been expanding their activities in India to new business segments such as
bioinformatics and life sciences; those doing so or planning to include Accenture, Intel,
Satyam, Cognizant, IBM, Oracle and TCS. Wipro Spectramind , India's largest third-party
offshore business process outsourcing provider, is conducting bioinformatics work for global
pharmaceutical companies.

II. Contract Manufacturing

The global pharmaceutical market is estimated to represent a $48 billion opportunity for India
by 2007, in terms of:
• manufacturing outsourcing-supply of active pharmaceutical ingredients(APIs) and
Intermediates.
•Development outsourcing-conducting preclinical and clinical trials.
•customized chemistry services-contract research services for compounds pre-launch.
Worldwide revenues for pharmaceutical industry contract manufacturing and research
services (CRAMS) totaled $100 billion in 2004 and will grow at an average annual rate of
10.8 percent to reach $168 billion by 2009, say analysts at Frost & Sullivan. Within this total,
the global market for contract manufacturing of prescription drugs is estimated to increase
from a value of $26.2 billion to $43.9 billion, although the over-the-counter medicines and
nutritional products sector will show the fastest growth.

CHALLENGES FOR THE INDIAN PHARMACETICAL SECTOR

India pharmaceutical companies are key players in the space of generic market of global
pharmaceutical sector and India is one of the important players of Pharmerging market. The
nature and diversity of the Indian pharmaceutical market, health care objectives and legal
system pose unique challenges for pharmaceuticals sector in India.

The diversity of the challenges are very complex, hence, Indian pharmaceutical sector have to
face these challenges with more courage to emerge as one of the leading players in the world
pharmaceutical market and to achieve progress in the health care.

The three strategic drivers for accelerating growth of the pharmaceutical industry in India are
intellectual property rights-its implementation in letter and spirit; liberal drug pricing
policies; and regulatory (as well as labor) law reforms,”

1) Patents and Intellectual Property Rights

India's new product patent regime is the result of the WTO's Doha Round of negotiations in
2001. Final agreement was reached on TRIPs ground rules for patent protection among WTO
member countries, stating that both processes and products should be protected .
Subsequently, on March 22, 2005, India's parliament approved the Patents(Amendment) Act
2005, bringing in a system of product patents backdated to January1, 2005. The new regime
protects only products arriving on the market after January1, 1995, abolishing the previous
process patent system established by the 1970 Patent Act.

2) Pricing Issues
The prices of 74 bulk drugs and their formulations, which account for around 40 percent of
the retail pharmaceutical market, are controlled by the Drug Price Control Order (DPCO)
of 1995. The government's 2002 Pharmaceutical Policy would have reduced the numbers of
price-controlled drugs still further, but this proposal is currently under judicial review in the
Supreme Court. If it is approved, the number of price-controlled drugs is expected to drop to
25.

3) Regulatory Reforms
The government is now starting to develop an infrastructure for clinical trials in India, with
amendments made recently to Schedule Y of the Drugs and Cosmetics Rules
of 1945 to allow for multicenter concurrent clinical trials in India and address the protection
of trial participants, and the integration and quality of data. Among other developments, Good
Clinical Practice guidelines have been published and made mandatory. The government is
now starting to develop an infrastructure for clinical trials in India, with amendments made
recently to Schedule Y of the Drugs and Cosmetics Rules of 1945 to allow for multicenter
concurrent clinical trials in India and address the protection of trial participants, and the
integration and quality of data. Among other developments, Good Clinical Practice guidelines
have been published and made mandatory.

IN THE YEARS TO COME

"Growth will happen because there are more products which will go off patent and these
products will start entering new markets, including Middle East, Africa, Western America,
Canada and Mexico," feels Lulla. Even though there has been a decline in demand with
respect to key markets, India's export prospects still remain bright as new markets open up.
As against a global Pharma industry of over $300 billion, India's export sales are in the region
of $1.5 billion. The potential for growth is enormous; a 20 per annual growth in exports is
expected over the next five years. The next five years will witness a spate of patent expiries
of blockbuster drugs that will accord opportunities to supply bulk drugs and formulations to
advanced markets. And India will be a dominant Pharma player by 2020 in manufacturing,
R&D, CRO and NDDS (New Drug Delivery System). Espicom's market projections assume
stable market growth of around 7.2 percent, putting the market at $13.4 billion by 2011. It
should be noted, however, that if calls for an end to drug price controls, come to fruition,
short-term market growth is likely to be much higher.

1.9 RESEARCH AND DEVELOPMENT

In Pharmaceutical Industry Research and development is for most and very prime
requirement, because unknown and dangerous diseases are spreading everywhere very
rapidly. A two-tier structure exists to manage the programme , viz., an Apex Executive
Committee at the Secretariat level, chaired by the Secretary, Department of Science
&Technology and an Expert Committee at the operational level. The Department of Science
and Technology has a dedicated programme for promoting R&D in the drugs and
Pharmaceutical sector A Research and Development is necessary not only to cure from dieses
but also to beat global competitors. So a high level expertise and adequate human resources
with modern facilities are required for drug development, so government gives this
responsibility to Science and Technology programme. .Accordingly, facilities that are needed
urgently and that would need to be created, namely,(a) DHA gyrase screening facility;(b)
Quantity- Structure-Activity-Relationship (QSAR) facility;(c) Immuno modulators modeling
and screening and(d) Pharmacological testing was identified. Government has taken several
policy initiatives for strengthening Research &Development in Pharma sector. Some of the
initiatives are…Fiscal incentives to R&D units Development of new drug molecules, Clinical
research, New drug delivery systems, Excellent infrastructure. As per information few
products are expected to go for clinical trials in the next few years in the areas of Anti-
infective, Anti-cancer and ,Life-style segments. Compared to the reported average R&D
spending of 2% of turnover in the sector, a few leading Indian Pharma companies have
increased their R&D spending to over 5% of their turnover.

1.10 THE GROWTH SCENARIO

India's US$ 5.5 billion Pharmaceutical industry is growing at the rate of 14 percent per year.
 It is one of the largest and most advanced among the developing countries. Over 20,000
registered Pharmaceutical manufacturers exist in the country. So far as Indian Pharmaceutical
industry is concern it is adorn by different advantage available in India due to this reason
other country’s MNCs also attracted towards it and try to enter in Indian market.

Some of the advantages of India are as under :

1) Financial Strength:
Indian market has full financial strength not only that but finance is also available at low rate
of interest and credibility is also high.
2) Less Legal Restriction:
Government encourages new promoters so they keep very less legal binding for
Pharmaceutical industry.
3) Human Capital:
India has a pool of personnel with high managerial and technical competence as also skilled
workforce. It has an educated work force and English is commonly used. Professional
services are easily available.
4) Cheap chemical synthesis:
Its track record of development, particularly in the area of improved cost-beneficial chemical
synthesis for various drug molecules is excellent. It provides a wide variety of bulk drugs and
exports sophisticated bulk drugs.
5) Globalization:
After 1994 Government has adopted new policy of globalization in which country is
committed to a free market economy and above all, it has a 70 million middle class market,
which is continuously growing and expanding.

1.11 INTRODUCTION TO THE COMPANY

TITLE- HR PRACTICES

Pfizer is one of the world’s leading pharmaceutical companies, and the leading one in the US
market. The research-based American company mainly operates in two areas, the human
medicine industry, and the consumer health care industry. Key products of Pfizer are for
instance Lipitor, Viagra, Xanax, ThermaCare and Centrum. Pfizer’s principal market for the
Common stock is the New York Stock Exchange; Pfizer is further listed on the London,
Euronext and Swiss Stock Exchanges, as well as on various regional stock exchanges of the
United States. In 2012, Pfizer possessed a market share of 6.6% of the US market for
pharmaceuticals. Its main competitors are Merck & Co Inc (6.3%), Novartis (6.0%), and
Astrazeneca (5.7%). Pfizer operates in more than 80 countries worldwide, in the advanced
market countries (e.g. US, Germany, Austria, and UK), as well as in the emerging and
developing market countries (e.g. Brazil, Argentina, and Russia).

PRODUCT LINE OF PFIZER

1) Accupril quinapril
2) Advil ibuprofen
3) Aricept donepezil
4) Aromasin exemestane
5) Bextra Valdecoxib
6) Caduet amlodipine and atorvastatin
7) Camptosar irinotecan
8) Celebrex celecoxib
9) Chantix Varenicline
10) Cefobid
11) Chapstick
12) Depo-Medrol methylprednisolone
13) Solu-Medrol methylprednisolone
14) Dimetapp
15) Depo Provera Premenstrual syndrome
16) Detrol and Detrol LA tolterodine
17) Diflucan fluconazole
18) Ellence epirubicin
19) Eraxis anidulafungin
20) Exubera inhalable insulin
21) Flagyl metronidazole
22) Genotropin Growth hormone
23) Geodon ziprasidone
24) Inspra eplerenone
25) Lipitor, Sortis atorvastatin
26) Lyrica pregabalin
27) Macugen pegaptanib
28) Norvasc amlodipine
29) Neurontin gabapentin
30) Relpax eletriptan
31) Selzentry maraviroc
32) Somavert pegvisomant
33) Sutent sunitinib
34) Toviaz fesoterodine
35) Tikosyn dofetilide
36) Vfend voriconazole
37) Viracept nelfinavir
38) Xalatan latanoprost
39) Xalacom latanoprost
40) Timolol Medication
41) Xanax and Xanax XR alprazolam
42) Zoloft sertraline
43) Zyvox linezolid

SWOT ANALYSIS
 1) STRENGTHS
One of the main strengths of Pfizer is the company’s’ experience in over 150 years Research
& Development, providing a broad therapeutic coverage. Pfizer’s product pipeline currently
consists of 82 projects at different stages of development. Furthermore Pfizer possesses a
strong market position with high sales and a solid marketing infrastructure. Another strength
of Pfizer is the high amount of strategic agreements and mergers & acquisitions, which
increase the portfolio, the brand reputation and lead to an improvement of know-how and
further resources. For instance, Pfizer possesses various research agreements with
competitors such as Merck & Co. Finally, the corporation benefits from a strong brand image;
this image is especially generated by Pfizer’s blockbuster products like Viagra, Lipitor and
Lyrica. Thus, Pfizer is defined by adequate usage of its internal resources and smart choices
of valuable partnerships.

2) WEAKNESS
Pfizer’s main weakness lies in its strong reliance on the blockbuster portfolio that generates
almost a half of the overall sales. As it is shown in the graphic, the blockbuster products, such
as Lipitor and Viagra, accounted for 49% of the revenues of biopharmaceutical products,
which in turn generated 94% of Pfizer’s overall revenues in 2012.

Figure 1: Segmentation of the Biopharmaceutical Products

This weakness is strongly connected to the following one, the expiration of patent rights. The
loss of exclusivity has an important impact on all of Pfizer’s products, but especially on their
blockbusters. Patent expirations cause a loss of technological advance for Pfizer, since
competitors will immediately penetrate the markets with generic products. Thus, the sales
will significantly decrease, as well as the prices for the respective products. This was, for
instance, the case for the blockbuster product Lipitor, when its patent expired in 2011. Lipitor
revenues decreased from US$ 9.6 billion in 2011 to US$2.3 billion in 2013. Unfortunately,
Pfizer is not able to develop new compounds at the same rate at which patents are expiring. In
addition, Pfizer does not produce enough low-cost pharmaceuticals, to firstly penetrate the
markets with generic products and, secondly, to be independent on economic downturns that
in most cases lead to a higher demand of these generic compounds.

A further weakness is the stagnation of Pfizer’s business units. As presented in the adjoining
table, the most profitable business units, Specialty Care and Primary Care, show decreasing
revenues.

Figure 2: Revenues per Business Unit

The business unit Emerging Markets shows only a slight increase and Established Products is
again characterized by falling sales. High increases can only be registered for the two
business units with the lowest revenues. This stagnation and decrease of revenues in the most
important units could be interpreted as an inability to invent new and profitable products.
Pfizer should invest and focus on growing markets to ensure a balanced market penetration to
react better on customer needs and to compensate shocks.

3) OPPORTUNITIES
The emergence of new markets as well as new market segments represents one big
opportunity for Pfizer. From a demographic point of view, the continuously ageing society, as
well as the fast growing emerging markets will significantly contribute to an increase in the
demand of pharmaceutical products. Moreover, Pfizer could expand its activities in the
production of generic compounds to further diversify its product portfolio and become more
independent from external shocks. Due to the high investments in Research and
Development, the future development time, as well as the cost of production will likely
decrease. The R&D agreements with health institutes and competitors will also be favourable
for this development. In addition, a rising awareness about healthcare needs can be expected
and will also ensure a growing demand of biopharmaceutical and customer healthcare
products. Due to this rising awareness, the demand for high quality therapies is likely to
increase as well.

4) THREATS
As already mentioned, Pfizer is highly dependent on external effects. This includes
government control and healthcare regulations. Since the sales in the United States count for
almost 40% of the overall revenues, especially reforms in the American Healthcare system
could have significant impact on Pfizer’s business, e.g. in terms of pricing and access
restrictions for its products. For instance, an increase in the minimum rebate on branded
prescription drugs within the U.S. Healthcare Legislation will affect the 2013 revenues ex
post by a reduction of US$ 458 million, according to the Financial Report of 2013. Moreover,
the expiration of patents is also a considerable threat since it causes high competition through
generic pharmaceuticals. Furthermore, national and international competitors could launch
similar products, even earlier than Pfizer, which represents another threat. Both of these
threats lead to price decreases and thus potential losses in Pfizer’s revenues.

BCG MATRIX

In the following paragraphs, the Boston Consulting Group matrix will be used to show the
current market position of several top-selling products of Pfizer, their blockbusters. Since
information regarding the products’ market shares is difficult to obtain, a complete BCG-
analysis could not be conducted.

 STARS : Lyrica : This medicine is indicated for the treatment of neuropathic pains.
The product showed the highest increases in revenues within the Pfizer portfolio in
2013 (+11% in comparison to 2012). It has a comparatively high market share of
 approximately 34%. Its patent rights will not expire until 2020, so it Lyrica will likely
maintain a blockbuster position in the upcoming years.

Sutent: This pharmaceutical is indicated for the treatment of renal cell carcinoma and
various tumours. Even if total revenues decreased by 3%, it can be considered as the
most important star within Pfizer’s biopharmaceutical product portfolio. Sutent is
market leader in its segment and is still under patent protection until 2018. Thus, it
will most likely generate significant revenues in the upcoming years.

 CASH COW : Enbrel: This product is used for the treatment of moderate-to-
severe rheumatoid arthritis and is the second best-selling medicine worldwide in this
segment. However, Enbrel’s total revenues increased by only 1% in 2013. In the U.S.
and in Canada, the sale is based on a co-promotion agreement between Pfizer and
Amgen, which expired in the end of 2013. Therefore, Pfizer will only receive
royalties in the following 2 ½ years, and will not be entitled to any further revenues
from Enbrel in the U.S. and in Canada. Nevertheless, since revenues from the rest of
the world are solid, the market share is high and the growth relatively low, Enbrel can
be considered as a cash cow.

Viagra: In 2013, total revenues of Viagra decreased by 8%. This development is

mainly due to the entry of generics in the European market, since Viagra lost
exclusivity in these markets in mid-2013. But since it is the most recognized treatment
for erectile dysfunction in the world, it still possesses a market share of approximately
45%. Viagra has a high brand reputation and generates solid revenues within the
Pfizer portfolio; thus, it can be considered as a cash cow.

Zyvox: Zyvox is the world’s best-selling branded agent for treatment of Gram-
positive pathogens, including methicillin-resistant staphylococcus-aureus. Its market
share amounts to almost 50%. However, total revenues increased by only 1% in 2013.
Zyvox will not lose exclusivity before 2015. Therefore, further solid revenues will be
generated until then. It can be considered as a cash cow with some characteristics of a
star in emerging markets, since the growth in emerging markets strongly contributed
to the total increase of revenue.
 DOG : Lipitor: This pharmaceutical is used for the treatment of elevated LDL-
cholesterol levels in the blood. Since the expiration of its patent rights in 2011, the
market share of Lipitor significantly dropped to currently approximately 4%. Lipitor
faces strong generic competition in all major markets. Its total revenues decreased by
41% from 2012 to 2013. But since it is still generating over US$ 2 billion of revenues,
it can be considered as a cash cow with slow tendency of becoming a poor dog.

Figure 3: BCG matrix

PEST ANALYSIS

1) Political and Legal Factors

Pfizer, as a pharmaceutical company, is strongly dependent on a countries healthcare system.

Since Pfizer operates globally, it has to overlook and take into consideration political and
legal factors from all over the world. Since the healthcare system of many countries is mostly
public, government sponsored, political factors will impact the government’s expenditures in
healthcare, as well as determine guidelines and quality standards for pharmaceutical products.

As Pfizer is an American corporation and the domestic market is the company’s key market,
Pfizer is especially affected by the U.S. Healthcare Legislation. The Patient Protection and
Affordable Care Act, which was enacted in 2010 in the U.S., resulted in both short and long-
term impacts on Pfizer. Some of the new regulations that will influence Pfizer’s business are
mentioned below:
  “An increase, from 15.1% to 23.1%, in the minimum rebate on branded prescription
drugs sold to Medicaid beneficiaries (effective January 1, 2010);
 extension of Medicaid prescription drug rebates to drugs dispensed to enrollees in
certain Medicaid managed care organizations (effective March 23, 2010);
 discounts on branded prescription drug sales to Medicare Part D participants who are
in the Medicare “coverage gap,” also known as the “doughnut hole” (effective
January 1, 2011); and
 a fee payable to the federal government (which is not deducible for U.S. income tax
purposes) based on Pfizer’s prior-calendar-year share relative to other companies of
branded prescription drug sales to specified government programs (effective January
1, 2011, with the total fee to be paid each year by the pharmaceutical industry
increasing annually through 2018).”

In most cases, they cause a reduction of revenues. Regulatory reforms of the U.S. healthcare
system are still in process and will be implemented continuously, which leads to access
pressures for Pfizer.

According to Pfizer’s Financial Report 2013, not only government actions affect the
company’s business, but so do health insurers and benefit plans. They limit access to certain
of Pfizer’s pharmaceuticals by imposing formulary restrictions in favour of the increased use
of generic compounds.

Another important legal issue is the one of intellectual property rights, which was already
mentioned. Many of Pfizer´s compounds have multiple patent rights that expire at varying
dates. Once the patent protections expire or are lost prior to the expiration date as a result of a
legal challenge, Pfizer loses the exclusivity of these products and will face strong competition
from generic pharmaceutical manufacturers. These manufacturers usually produce similar
products and offer them at lower price levels. This results in decreasing revenues for Pfizer,
often in a very short period of time.

2) Economic Factors

Pfizer continues to face a challenging economic environment, which impacts its operations
worldwide. Pfizer believes that an economic environment with high unemployment rates and
salary cuts leads to an increasing number of patients who switch to generic products, delay
their treatments, skip doses or use less effective treatments in order to reduce their costs. Such
a situation resulted from the financial crisis of the recent years. Especially in the U.S., the
economic decline further caused an increase of the number of Medicaid members whose
access to brand-name drugs is limited in some U.S. states and who benefit from high rebates
on pharmaceutical products.

Moreover, since Pfizer is a globally operating company, foreign exchange rates are of
significant importance for the company’s revenues, earnings, and substantial international net
assets. Pfizer operates in more than 100 foreign currencies (e.g. Euro, Japanese Yen).
Changes in those foreign currencies relative to the U.S. dollar can strongly impact the
corporation’s results and their financial guidance.

However, the pharmaceutical industry as a whole is less dependent on the economic situation
in terms of systemic risks, since pharmaceutical products will always be necessary. But Pfizer
should focus on a higher production of generic pharmaceuticals, to avoid the risk of revenue
decreases in times of economic downturns and crises. Moreover Pfizer’s operations are
affected by a country’s inflation rates in terms of sales prices, cost of goods sold and wages.

3) Social Factors

Social factors significantly impact the operational results of Pfizer, since pharmaceuticals are
generally produced for human beings. Thus social changes will influence the pharmaceutical
industry. Such factors are, for instance, the population growth rate and the ageing society. An
increasing awareness of healthcare could have an impact on Pfizer in both ways, negative as
well as positive. If people become more aware of possible side-effects of drugs they might
buy other pharmaceuticals. On the other hand, a higher healthcare awareness will increase the
demand for high quality pharmaceuticals and will therefore result in higher revenues for
Pfizer. Further social factors, which appear globally, “such as eating habits, increased
automation, changing lifestyle (due to economic growth), will continue to cause chronic
diseases.” One of the main threats for the healthiness of the population is the increasing rate
of obesity. Obesity can as well result in chronic diseases, for instance diabetes. This is not
only a problem of developed countries anymore, but also of the emerging ones. As a result,
two tendencies can be observed, on the one hand the ageing society and the growing
awareness of healthcare, and on the other hand the increasing amount of chronic diseases.
Those developments will, however, positively influence Pfizer’s performance in terms of
growth and revenue.

4) Technological Factors

The technological development in the modernized world will provide the pharmaceutical
industry with new business possibilities both in terms of further service provisions and new
therapy and treatment systems. Pfizer could benefit from new information and
communication technologies, healthcare presence on the social media platforms, and
pharmaceutical treatments could become more customized. Further, the Research and
Development activities of the corporation will be significantly influenced of new innovations
in pharmaceutical research methods and machines.

1.12 OBJECTIVES OF STUDY

 To understand what are the types of HR practices being followed in Pfizer and how they influence
the working environment of the organisation.
 To inculcate good HR practices, this will help us in future to be a good leader in an organisation
rather than to be just a manager.
 To understand how an employees in an organisation can be refined so as to achieve all the set
organisational goals effectively and efficiently.
 2 LITRATURE REVIEW

ARTICLES ON HR PRACTICES:

2.1 HRM Policy is the most important strategic resource for any organization. HRM plays vital role in
planning, monitoring, motivating and meditating rather than controlling orientated task alone (Truss, 2001).
According to Huselid (1995) if we adopt best practices like selection and in case of Selection pouring the best
quality of skill set which accelerates the value of skill record in specific to the organization and the
performance of the employees. Moreover, training is also significant as it refers the selection practices which
could be help full in developing a competitive organization to culture.
Cooke (2000) has incorporated efficiency and effectiveness as the most important elements of performance;
apart from competitiveness and productivity. In addition, he has admitted that the practices of Human
Resource are supportive in developing the knowledge as well as skills as a method to increase employees‟
performance (efficiency as well as effectiveness). Summers and Hyman (2005) assert that the schemes of
financial contribution are more advantageous for the organizations than the associated cost. According to
Datta, Guthrie and Wright (2003), firm can get high growth output with the use of the best Human Resource
practices.
Compensation “According to Çalişkan (2010), there are three aspects of the same scenario. Firstly there
are some goods or services which are not paid via cash. Secondly, they dive deep down to see if any part is
paid in an informal way. Thirdly, they also want to analyse the reasons which force employers to pay in the
form of goods instead of cash.”
Employee participation Employee participation increases employees‟ self-confidence and develops
productive (talking about employees‟ part in decision). Researchers (Wright, Gardner, & Moynihan, 2003;
Paauwe, 2004) are of the view that if employees participate in decision making, their confidence will be
enhanced which will result in better production. Moreover shared decision making can create new
opportunities for the employees and organization.
Performance Appraisal In order to evaluate the employees‟ performance the performance appraisal evolution
is used. Guest, Michie, Conway & Sheehan (2003) are of the view that performance appraisal evolution is
essential for the success of any organization. Singh (2004) further used “Multi-rater methods such as "360°
appraisal” to collect the data on employees‟ individual behaviour. Wood (1999) and William, Werther &
Davis, (1996) suggest that this state of affairs is also present in the social context of Performance Appraisal.
Career Planning Guest (2002) states that the purpose of career planning process is to help Professionals
inspect their careers; evaluate their training and educational needs; and develop some detailed action plans
not only to maintain but to improve their specialized and administrative skills in a work environment that
considers the value of fast change and edition.
Job Definition Delery and Doty (1996) is of the view that balancing HR practice System effects
employees‟ performance. Job description and job specification is a combination of Job definition. It plainly
outlines the tasks, working conditions and anticipated skills of an individual performing that job (Collins,
Ericksen & Allen, 2005).
Theoretical Back ground In 1960, McGregor and Maslow's hierarchy introduced theory X and
Theory Y which describes that how motivation and human behaviour in work place help to get maximum
output. Theory X type employee needs more attention because management considers them they are lazy
and need to keep an eye on employee whereas theory Y states that employees are active and have ability to
resolve the problem without any supervision.
According to Ouchi‟s theory Z, this is a combination of Theory X and Theory Y, theory X emphasis on
human reluctance to fulfil the needs thoroughly whereas theory Y is based on the human determination to
acquire maximum goals. Theory Z helps to enhance the employee truthfulness to the company by providing
a job for life with a well-built central point on the welfare of the employee, both on and off the job. Modern
allegation for corporation using these theories have been showed development in turnover rates, productivity,
effectiveness, efficiency, organizational behaviour, and job satisfaction and employee performance.

PURPOSE OF HUMAN RESOURCE AND ITS PRACTICES

The main aim of Human resource management in any organization is to refine the employee performance
in to look at of their employers planned objectives. HR department is highly concerned that how to organize
the people within organizations. This is typically liable for a number of activities, as well as employee
recruitment & Selection, performance appraisal, Compensation, Job Definition, Career Planning & Training
development.
(HRM) Human resource management means the way to best utilization of Human Resource to attain
organization goals. In this practices involved to bringing out the „human resource (HR) feature of a
management place as well as human resource Planning, job Description, Career Planning, selection,
compensation, performance appraisal, and development. HRM helped to balance the Policies, practices, and
systems that control employees‟ manners, position, and performance

Hypothesis Human Resource Management Practices are significantly correlated to Employees performance
H1: Performance appraisal is significantly correlated to Employees‟ Performance.
H2: Career planning is possible to be significantly correlated to Employees‟ Performance.
H3: Employee Participation is expected to be significantly correlated to Employees‟ Performance.
H4: Job Definition is significantly correlated to Employees‟ Performance.
H5: Compensation is strongly significantly correlated to Employees‟ Performance
H6: Selection is highly significantly correlated to Employees‟ Performance.
H7: Performance as perceived by the Respondents is significantly correlated to Employees‟ Performance.

DISCUSSION & CONCLUSION

In the face of modern era, and rapid change in organizations, it has become very apparent for any
organization that its employees should be efficient in their work. Now a day there is higher competition
among multinational & national organizations. Similarly employees are also highly energetic to achieve high
levels of productivity. The management is responsible to operate the HR practices to get competent result.
The aim of the current study is to examine the relationship between HR practices and Employee
performance. This study has main focus to examine the impact of HR practices on Employee performance in
Multinational Companies. To analyse the data Correlation and multiple regression analyses were used to
examine the relationship between HR practices and Employee performance. It can be seen that selection is
significantly correlated with Employee Performance, and other variables are not significantly correlated with
employee performance. It is evident that performance appraisal, compensation and selection have strong
regression. Consistent with the previous research, the findings of the study suggest that HR practices have
impact on employee performance as supported by Sing (2004) and to Ouchi, theory Z. From these results, it
can be concluded that if we want to achieve the higher level of employees outcomes, we have to pay more
attention to effective HR Practices.

REFERENCES

Becker, B. E., Huselid, M. A., Becker, B. E., & Huselid, M. A. (1998). High performance work systems and
firm performance: A synthesis of research and managerial implications. Research in personnel and human
resource management.

RESEARCH GAP

Researchers like Singh (2004); Truss (2001); Guest (2004); Paauwe and Boselie (2005), worked on HR
Practices and examined that it has positive correlation with employee performance but focus and drive of this
topic has been the developed countries such as: UK and India respectively. There is less literature available on
this topic in Pakistan, According to them Pakistan is measured as under researched country in the field of
HRM practices. Some researchers like Sels, Winne, Maes, Delmotte, Faems and Forrier (2006) have worked
on underdeveloped countries like Pakistan in Banking Sector. The present study has taken two famous
multinational companies (Unilever & Nestle) of Pakistan at one time for the research and to find “is HR
practices have same effect on these companies”.
2.2 Rao conducted another survey for knowing performance appraisal of human resource
development function in Indian organization. This study shows that monitoring the human
resource development implementation in public sector organizations scored slightly better
than the private sector while the reverse seems to be true on human process reserved.
According to Ishwar (1991)23 state that for HRM, 3 things are important namely
(1) way to better adjust the individual to his/her job and the environment,
(2) the greatest involvement of the employee in various aspects of his work,
(3) the greatest concern for enhancing the capabilities of the individual.
Some organization may achieve a saturation point in terms of their growth over a period of
time to maintain such a saturation level of growth and to enable the organization to operate in
the changing environment, employees are to be helped to sharpen their existing competencies
and to acquire new ones. In this context, study made by IGNOU pointed out that people need
competencies to perform the assigned tasks. Higher degree of quality of performance of tasks
requires higher degree of skills. Without continuous development of competencies in people,
organization is not likely to achieve its goals. In fact, competent and motivated people are
essential for the growth, survival and excellence of the organization (1992)24. Raman
(1992)25 study the HRM experiences of State bank of India, especially training and he state
that the training philosophy of SBI as follows. “Training in SBI is a pro-active, planned and
continuous process as an integral part of organizational development. It seeks to impart
knowledge, improve skills and reorient attitude for individual growth and organizational
effectiveness.”

Rao (1992)26 studied HRM practices introduced in Voltas Ltd. And observed that Volta
believe on people’s strength. Companies conduct/adopted performance appraisal,
management development programmes , counseling , communication policy, potential
appraisal, training etc. through it, Voltas HRM experience brought out by Rao. He also
studied Bharat Earth Movers Ltd. (BEML) and brought out their experiences on HRM
practices (1992)27.
Kapoor (1992)28 assessed HRM practices of Indian Oil Corporation (IOC). He
conducted a survey to measure organizational climate and observed that role analysis
exercises were conducted and 40 workshops were organized to enhance HRM competencies.
Economic survey (1994) 29 state that human development is the ultimate goal of our
development programmes and is also crucial for development of social sectors, such as
education and health, is crucial for sustaining higher rates of overall economic growth in an
increasingly integrated world economy. Significant progress has been made over the years in
HRM as reflected by demographic indicators, literacy, educational levels and health services
etc. but considerable ground remains to be covered in view of demographic pressure, regional
and class disparities in access to social infrastructure and our still low levels of attainment in
social sectors compared to even several developing countries in Asia. HRM is a highly
organizational specific activity (Tyson 1995)30.Whereas Reddy (1995)31 show that 90
percent lecture method used, on the job instruction method 76, computer conferencing is least
used pedagogical methods in training programs. Jain (1996)32 examined on the basis of
primary data HRM sub-systems including (i) goal setting, role analysis, career planning,
performance appraisal and executive development, in two organization at middle
management level.
(ii) management policy, potential appraisal and organization development at the top
management level,
(iii) training at the lower level
(iv) inter-level relationship in the various HRM Sub-systems, effectiveness variables and
personal history. Bharat Heavy Electricals Ltd.

2.3 Dhar (2001)37 assessed recruitment and promotion policies, merits and competence,
performance appraisal and motivation, morale and commitment. He suggested the following.
1) Recruitment and promotion policies to be reviewed time to time.
2) Merits and competence should be given greater emphasis in promotion.
3) Performance appraisal system to be modified and undertaken time to time.
4) Motivation, morale and commitment and sense of belonging and involvement of
employees at all to level should be enhanced. Hansson (2002)38 studied two questions, based
on 26 company’s data. He examines:-
(1) what determines employee training from an organizational
perspective
(2) to what extent training investments contributes to company performance. He concluded
that the training have positive impact on organization performance. Study undertaken by
Srinivas (2002)39 was based on primary data and 59 companies and 3 case studies to explore
the relationship between strategic responses of organizations and the strategic human
resource development system.
The study finds moderate relationship between two. Management, Unions, frontline officers /
supervisors and individual workers seem to be having certain apprehensions which might
have contained the implementation and progress of strategic human resource development
practices specially job enrichment programmes, performance appraisal, communication,
works involvement and empowerment programmes. He found that the managerial staff are
better informed and are better involved in organizational decision
making in comparison with other categories of employees. Rao (2003)40 state in his another
study that Indian organizations seem to have played only lip sympathy to human resource
development as
(i) they do not follow the structure principles
(ii) very few have feedback and counselling system
(iii) no separate potential appraisal system
(iv) mostly do not have full time human resource development facilitator. Singh Anil Kumar
(2003)41, in the paper, ‘Philosophy of management and human resource management in
Indian organization’ has assessed various HRM practices in Indian organization and examine
the relationship between HRD practices and the philosophy of management. The objectives
of the study were:-

1) to investigate the various HRD practices like HR planning, recruitment selection,

performance evaluation, training and development, career management and rewards at
managerial level in public and private sector
organization,
(2) to examine the nature of differences in the philosophy and management subscribe by the
organization towards employee working,
(3) to examine the nature of relationship between HRD practices philosophy and
management in public and private sector;
(4) to examine the impact of HRM practices and organizational culture on philosophy and
management in public and private sector.

The hypothesis of the study was HRM practices are significantly related to philosophy of
management. Interactive relationship model was employed and impact of HRM practices and
organizational culture on philosophy and management was assessed.

GAPS IN EARLIER STUDIES

Above review of literature shows that there are many studies on HRM practices in India and
as well as in abroad. But most of the studies are non-pharmaceutical companies and specially
studies are on corporate sector. There is not single study on pharmaceutical companies as far
as Navi-mumbai is concerned. If it is even though it is not for HR and E-HRM practices
together. Hence researcher has taken up this study for research purpose to fill up some gap in
this area to some extent.

REFERENCES

Sar, A.L., Garth, L.M., and Ray, M, ‘Human resources and labour markets’, Horper and Row
Publishers, New York, 1972, P.1-2.

RESEARCH METHODOLOGY

3.1 RESEARCH DESIGN: - The research design will be used in this study is both
‘Descriptive’ and ‘exploratory’. The target population of this study will be consumers from
urban communities only because of the limitation of the study. Data will be collected by
means of a comprehensive literature review and through the administration of in-depth
questionnaires.
3.2 DATA COLLECTION METHOD: - The data will be collected using both by
primary data collection methods as well as secondary sources. Primary Data: All the
information will be gathered through primary sources. The methods that will be used to
collect primary data are:
1. Questionnaire
2. Interview

3.3 METHODS TO REPRESENT DATA:- The main tools for collecting data will be the
questionnaires and semi-structured interviews. Finally, responses from the collected data will
be encoded and analysed. Data Analysis & Interpretation – Classification & tabulation will
transform the raw data collected through questionnaire in to useful information by organizing
and compiling the bits of data contained in each questionnaire i.e., observation and responses
will be converted in to understandable and orderly statistics that will be used to organize and
analyse the data.

REFERENCES

 https://eternalyield.com/2014/08/24/extended-qualitative-analysis-
pfizer/
 https://www.ranker.com/list/all-pfizer-brands/werner-brandes
 https://www.scribd.com/document/296594716/pfizer-case-analysis
 http://shodhganga.inflibnet.ac.in/bitstream/10603/16095/3/chapter
%201b%20%2827-40%29.pdf
 https://www.google.com/search?client=firefox-
b&ei=IaqgW8v4Ldm2rQG26YUo&q=introduction+of+pharma+se
ctor&oq=introduction+of+pharma+sector&gs_l=psy-
ab.3...1580.4605.0.5027.14.9.0.0.0.0.0.0..0.0....0...1c.1.64.psy-
ab..14.0.0....0.Mk6uxCLYlWI
 https://en.wikipedia.org/wiki/Pharmaceutical_industry
 https://www.google.com/search?
q=introduction+of+pharma+industry&ie=utf-8&oe=utf-
8&client=firefox-b
 https://en.wikipedia.org/wiki/Central_Drugs_Standard_Control_Or
ganization
 https://www.google.com/search?client=firefox-
b&ei=OKmgW7STK5Gv9QPgvI7oDA&q=regulatory+bodies+in+
 pharma+in+india&oq=regulatory+bodies+in+pharma+in+india&gs
_l=psy-ab.3..0.15034.17969.0.18423.9.8.0.1.1.0.318.1158.2-
1j3.4.0....0...1c.1.64.psy-ab..4.5.1166...0i22i30k1.0.aYef5AER6Os
 https://www.quora.com/What-is-future-of-the-Indian-pharma-
industry
 https://en.wikipedia.org/wiki/List_of_largest_selling_pharmaceutic
al_products