A+Study+on+Employee+Satisfaction

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A STUDY ON EMPLOYEE SATISFACTION

WITH REFERENCE TO

NATCO PHARMA LIMITED

A Project report submitted to Andhra University, Visakhapatnam in the

partial fulfillment for the award of the degree of

MASTER OF HUMAN RESOURCE MANAGEMENT

BY

SASI PRABHA YADAV

Under the guidance of

Dr. G. RAGHAVAIAH

(H.O.D)

M.H.R.M Department

COLLEGE OF MANAGEMENT STUDIES

Gandhi Institute of Technology and Management

VISAKHAPATNAM-530045

2007-2009

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DECLARATION

I here by declare that this work entitled A STUDT ON EMPLOYEE

SATISFACTION with reference to NATCO PHARMA LIMITED is

submitted to college of management studies , GITAM,

VISAKHAPATNAM is my own work and that matter of analysis and

opinions are entirely my responsibility and has not been submitted for any

degree or diploma to any institute or university.

Place: Visakhapatnam SASI PRABHA

Date:

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ACKNOWLEDGEMENT

I express my deep gratitude to Sri. A. Lakhsminarayana,

General manager- HR of NATCO Pharma Ltd. Who has given

me this great opportunity to work on this project.

I express my deep gratitude to Mr. P. Srinivas Rao Asst.

manager-HR, B. Krishna Prasad, Sr. Executive, S.Anupama,

G.Vijaya Chamundeswari, V.Surekha and K.Vikram Reddy for

giving their great suggestions to accomplish my project in this

company.

I wish to express my gratitude to Prof. Siva Rama Krishna,

Principal of College Of Management Studies, GITAM for giving

an opportunity to work on this project.

I am indebted to Dr. G. Raghavaiah, H.O.D , M.H.R.M

Dept, College Of Management Studies, GITAM, who guided me

in each and every step of my project with continuous feedback and

insight dedicating her precious time from his busy schedule,

without which my project would not have been possible.

I would like to thank all my teachers, Department of

Master of Human Resource Management for their support extended

by them during the stay in the College Of Management Studies.

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INDEX

CHAPTER 1 Human Resource Management

Performance Appraisal

Employee Job Satisfaction

CHAPTER 2 Industry profile Company profile

CHAPTER 3 Need for the study Objectives of the study

Scope of the study

Data analysis

Methodology and Sampling

Research Methodology

Limitations.

CHAPTER 4 Findings, Suggestions, Conclusion

CHAPTER 5 Employee job satisfaction Questionnaire

BIBLIOGRAPHY

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1.1 HUMAN RESOURCE MANAGEMENT 1.2 PERFORMANCE APPRAISAL 1.3 JOB SASTIFACTION

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1.1 HUMAN RESOURCE MANAGEMENT

MEANING:

Human resource management is management function involving procurement of suitable

human resource, train and develop their competencies, motivate them, reward them

effectively and create in them an urge to be a part of management team whose aim should

be rendered, dedicate, committed service of the success and growth of the organization.

Human resource management refers as s set of

programs, function and activities designed and carried out in order to

maximize both employees as well as organizational effectiveness. It is the

process of binding people and organization so that the objectives of each are

achieved.

HRM involves the application of management

function and principles. The function and principles are applied to

acquisitioning, developing, maintaining, and remunerating employees in the

organization.

Human resource management means employing

people, developing their resources, utilizing, maintaining and compensating

their service in tune with job and organizational requirement. HR is the most

significant factors of production every human being is born with tremendous

potential. HR refers to the knowledge, skills and beliefs of an organization

workplace. Enhance their skills, abilities, and knowledge in accordance with

the changing requirements of groups, organization and society in the essence

of HRD.

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DEFINITION:

According to FLIPPO

Human resource management is a process of

organizing, directing, planning and controlling of the procurement,

development, compensating, integrating, maintenance and separation of

human resources to the end of those individual organization, societal

objectives are accomplished.

SCOPE OF HUMAN RESOURCE MANAGEMENT:

The scope of HRM is indeed vast. All major activities in the working life of a

worker from the time of his (or) her entry into an organization until he (or)

she leaves, come under the preview of HRM. Specifically the activities

included are-

Hr planning

Job analysis and design

Recruitment and selection

Orientation and placement

Training and development

Performance appraisal

Job evaluation

Employee and executive remuneration

Motivation and communication

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Welfare, safety & health

Industrial relations and like

For the sake of convenience, we can categorize all these functions into seven

sections

1. INTRODUCTION TO HRM

2. EMPLOYEE HIRING

3. EMPLOYEE AND EXECUTIVE REMUNERATION

4. EMPLOYEE MOTIVATION

5. EMPLOYEE MAINTENANCE

6. IR &

7. PROSPECTS OF HRM.

FEATURES OF HUMAN RESOURCE MANAGEMENT:

1. Human resource management is a part of management discipline.

2. Human resource management is a process, just like management process.

3. Human resource management is a continuous process and not a one-stop

action.

4. Human resource management is concerned with people in the

organization both present and potential.

5. Human resource management is directed towards achievement of

organization objectives by providing tools and techniques for managing

people in the organization effectively.

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OBJECTIVES OF HUMAN RESOURCE MANAGEMENT:

To help the organization to attain its goals by providing well-trained and

well-motivated employees.

To utilize the human resource effectively in the achievement of

organizational goals.

To enhance job satisfaction and self-actualization of employees by

encouraging and assisting every employee to realize his (or) her full

potential.

To establish and maintain productive, self-respecting and internally

satisfying working relationship among all the members of the organization.

To bring about maximum individual development of members of the

organization by providing opportunities for training and advancement.

To maintain high employee morale and sound human relation by

sustaining and improving various conditions and facilities.

PRINCIPLES OF HUMAN RESOURCE MANAGEMENT:

Principle of maximum individual development.

Principle of scientific selection.

Principle of high morale.

Principle of dignity of labor.

Principle of team spirit.

Principle of effective communication.

Principle of fair remuneration.

Principle of effective utilization of human resource.

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Principle of participation.

Principle of contribution of national prosperity.

SIGNIFICANCE OF HUMAN RESOURCE MANAGEMENT:

Human resources are the most precious assets of an

organization. They are activators of non- human resource, means of

competitive advantages and sources of creativity provided, they should be

managed effectively. Human resource management thus has a great

significance.

The significance of human resource management can be

discussed at four levels-

Organizational significance

Professional significance

Social and national significance

Organizational significance-:

1. Attracting and retaining the required talent through effective human

resource planning, recruitment, selection, placement, orientation,

compensation and promotion policies.

2. Developing the necessary skills and right attitudes among the employees

through training & development and performance appraisal.

3. Securing willing co-operation of employees through motivation,

participating, grievance handling etc.,

4. Utilizing effectively the available human resource.

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5. Ensuring the organization will have in future a team of competent and

dedicated employees.

Professional significance-:

1. Developing people on continuous basis to meet the challenges of their

jobs.

2. Maintaining the dignity of personnel at work place.

3. Providing proper physical and social environment at workplace to utilize

the capabilities of the people effectively.

4. Providing environment and incentives for developing and utilizing

creativity.

Social significance-:

1. Maintaining balance between jobs and job seekers in terms of job

requirement and job seekers abilities and attitudes.

2. Providing most productive employment from which socio-psychological

satisfaction can be derived.

3. Utilizing human capabilities effectively and matching reward for the

contribution made by people.

4. Eliminating wasteful organization and individual practices.

National significance-:

1. Increase in the size and complexity of organizations.

2. Rapid technological development like automation and computerization

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3. Rise of professional and knowledgeable workers.

4. Increase in proportion of women in the workforce.

5. Growth of powerful nation-wide trade unions.

1.2 PERFORMANCE APPRAISAL

Performance appraisal is an important part of the system of developing

human resource and developing a culture of maturity and collaboration in an

organization. It provides input for better management of salary and reward

system. Effective functioning of performance appraisal system depends on a

minimum level of trust and commitment to the development of employees

union organizations.

People differ in their abilities and attitudes. The difference are

natural to a great extent and cannot be eliminated completely either by

importing or trying and developing. There will be always some difference in

quality and quantity of work done by different people. Therefore it is

necessary for the management of an organization to know the difference so

that they may be developed to accept the responsibilities and challenges

associated with higher jobs.

The individual employees may also like to know his capabilities in

terms of his performance on the job qualitatively in comparison to his fellow

employees. So that, he may improve upon his own.. His peers similarly

change for better looking at his performance.

Formal appraisal of individuals performance thus begin in CUE

dynasty in china where an imperial rather than appraised the performance of

member of the royal family, similar system was followed in many countries

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in 1883. The New York civil service also introduced a formal appraisal

system. Employee appraisal techniques are set to have been used for the first

time during the first world war, when at the instance of Walter dill Scott, the

US army adopted the man rating system for evaluating military personal.

Later, during 1920 to 1930 period merit rating programs which

were used to give wage increments the basis of merit were accepted. The

later phase of performance appraisal system to started in USA with only few

organization, at present, large number of American companies adopted

performance appraisal system to evaluate their employee performance. A

formal performance appraisal system has been perceived to be equally

important in Indian business industry.

The system of performance appraisal varies in different

countries. American companies use performance appraisal mainly to

determine wage increase, promotions & transfers. There is a little emphasis o

providing feed back to the employees and assessing the needs for their further

training. Indian companies in contrast use performance appraisal for training

& development, providing feed back to employees and also use it in

determining wages, promotions and transfer etc as the American companies

do.

360 DEGREES FEEDBACK- defined-:

The term 360 degrees feedback came from the analogy to a

compass. A circle with 360 points of reference to determine and monitor

direction. 360 degrees feedback provides performance data from multiple

point of reference not just one. Like a compass, it is a navigational tool that

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more accurately let us know when we are on (or) off course. It can fill the

gaps that invariably exist between how you see yourself and how others see

you. Its purpose is first is to gain deep inside into how others and we see our

performance and second to reinforce and accelerate the need for continuous

development.

Compared to traditional, single source feedback process, 360

degrees feedback is significantly more powerful, reliable and accurate. The

added dimension of 360 degrees is its ability to compile multiple assessment

from co-workers and contrast that data with own self-perceptions. Because, it

come from a border base of perceptions and interaction, it is less likely to be

biased or skewed by one persons opinion. Traditional feedback relies

heavily on only one source- THE BOSS. In most cases people interact much

more frequently with co-workers than with their boss. People also tend to

interact differently with their boss. Bosses do not see as much of us or our

everyday work as do co-workers and customers. Consequently, feedback

from the boss, while valid is not fully representative of persons effectiveness

in the work place. It can be one sided and fair or even vindictive, as many

people know from experience 360 degrees feedback levels the plain field by

soliciting inputs from a variety of sources.

The boss, peers, co-workers, people, sub-ordinates and even customers. The

feedback tends to not only be more balanced, but also harder to dismiss due

to its broader range of input as one user of 360 degrees said everybody

cannot be ought to get me.

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FEEDBACK ANSWER THREE BASIC QUESTIONS:

Why should I improve my performance?

What do I need to improve?

How can I improve?

APPLICATION OF 360 DEGREES FEEDBACK:

Solid 360-degree feedback provides hard, actionable data on performance.

Those assessed can get their band around it, do something with it, and since it

comes from people of their own choosing, it is not easy to dismiss the

outcomes. Assessor quite often feel obligated to take the feedback seriously

even though they may wish to avoid it. Here is several application of 360

degrees process-:

Personal development-

360 degrees feedback can be used to help employees master

the skill needed in their present job or prepare for a new one. It can also be

used to gain the attention of those unwilling to listeners to verbal feedback.

Personalized and graphically displayed 360 degrees feedback has a striking

effect on people attention.

Once digested, the information in the feedback report is next

used to generate a personal improvement plan based on which skill are most

important and in need of development .A good 360 degrees instrument will

provide specific, actionable feedback, along with guided, database

development.

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Leader-

Managers find 360 degrees feedback particularly valuable. To

be successful, they need to know several things:

1). Are they demonstrating competence in the skills needed to achieve the

results for which they are held accountable.

2). Are they using an approach or style with their teams that facilitates rather

than obstructs the achievement of others, and

3). Do they have the necessary competencies to navigate the uncertain water

of continuous change.

Middle managers are often targets of re-structuring and down- sizing. For

them, survival is dependent on their ability to continually add value to the

organization. 360 degrees feedback provides a means of measuring and

making sure their contributions are valued.

When framed properly in a workshop a comparative

feedback from self and other sparks a hunger for on-going improvement.one

can recall many managers whose having received their feedback and created

personal development plans, returned 6 to 9 months later to reassess their

performance. They were eager to get more feedback from their teams to see

how much they have improved. If there is one thing that is predictable, its

that people love to hear what others have to say about them, though it may

not always be favorable.

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Team development-

360 degrees feedback can also be used to stimulate

team development. Most users of 360 degrees instrument ask co-workers or

team members to provide them feedback. This usually piques the co-workers

curiosity. When the assessee shares their results and requests support from

the assessors the team members interest is aroused even more. The next

comment often heard in the team after such a discussion is, we all ought to

do this. Its not far from this point to the question, how are we doing as a

team?

Change-

360 degrees feedback can be used to accelerate organizational

change and transformation. It can be used cross departments (or) divisions as

a way of spot lighting the need for change and hastening the organizational

shift. I have seen major organizations put thousands of employees at all

levels through 360 degrees feedback programs designed to reduce horizontal

boundaries, and increase accountability and strategic thinking. Its been used

to help sweep out the old cob webs and bring in fresh air to thinking

processes.

360 degrees feedback is used to transform cultures by

providing hard data on what policies, practices and procedures support high

performance and which dont. It is often wake up call for people or groups.

Some instruments even measure readiness for (or) resistance to change.

Framed within a discussion of customer responsiveness, for example this can

be a real eye opener.

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Self directed teams-

360 degrees feedback strengthens accountability and

self-management. Since self-directed teams are a known traditional

structures, they can use a 360 degrees process to provide objective and

reliable performance feedback for themselves individually and collectively.

When a person receives high quality, reliable feedback and co-workers it

highlights reinforces the connection between individual performance and

team results. Through a process of self-assessment, teams can identify their

developmental needs and provides their own direction for improving the level

and quality of their performance. They can also include customers as part of

their assessor base for added feedback dimensions.

Learning organizations-

The knowledge of both individual and organization is a

key success factor. In the climate of continuous change, 360 feedback

becomes, as invaluable tool to not only stay current, but also to continually

grow the cutting age of the skills needed to thrive.

Perhaps more than any other tool, 360-degree feedback

promotes continuous learning and growth because it is designed and intended

for repetition.

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IMPLEMENTING 360 DEGREE FEEDBACK: -

Because it grabs peoples

attention so well, 360 degrees feedback can become part of the new foundations

for increased organizational performance. But, its not pixie dust that you just

spread around. Like most things that increase results it requires thoughtfulness

in its applications.

Here are a number of dos and donts that have proven

valuable in utilizing 360degrees feedback over the years

What is 360 degree feed back?

360-degree feedback is defined as the systematic collection and feed

back of performance data on an individual or group derived from a number of

stake holders in a performance.

Uses of 360 degree Performance appraisal System:

Supervisor

Accurate assessment -Favoritism

Anonymous, unbiased and accurate info

Provides greater objectivity.

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Organized training and development:

Things are told before hand distribution and processing takes place in

advance

Helps understand the needs better and in more detail

Team building:

Assess each other on skills such as communicating, deliver on promises,

planning, listening , maintain relationship

The approach promotes individual development within teams.

Feedback can be gathered before any team event happens

Performance management:

Reduces anxieties making it a less special event

Validation of training and other initiatives:

To identify the performance improvement needs

Many organizations have not yet used this to judge the success of an

individual, team or organization

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Used for appraisal:

Focus on current performance

Individual managers and the latter

Past performances

REMUNERATION:

Step 1:-THE QUESTIONNAIRE:

Leadership

Communication

Decision making

Expertise

Team leader

Organizational skills

Adaptability

Vision

Step 2:- RATINGS:

1-2 : least skilled

3-4 : not a strength

5-6 : appropriate skill

7-8 : a strength skill

9-10 : an exceptional skill

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step 3 : DATA PROCESSING:

Internal: use of software

External: suppliers

Step 4: FEEDBACK:

Individual

Manager

Anonymous

Culture plays a role

Step 5 : ACTION:

Action will depend on the purpose

Development- individuals

Appraisal- managers

Pay- HR.

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ADVANTAGES OF 360 DEGREES FEEDBACK:

These are the following advantages-

Affording a broader perspective than before

Increased awareness and relevance

Reliable feedback to senior managers

Gaining acceptance

Encouraging open feedback

Reinforcing

Rounded view of performance

Identifying key development areas

Raising self awareness

Continuous improvement

Improve morale

Acceptance of results.

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DISADVANTAGES OF 360 DEGREES FEEDBACK:

No openness

Excessive stress

Lack of action

Over dependence

Too much of bureaucracy

Incapability and lack of skill managers

STEPS OF PEOPLE PERFORMANCE MANAGEMENT:

Step 1 : Gathering feedback

Step 2 : Self- assessment

Step 3 : Preparation by the manager

Step 4: Performance ratings

Step 5 : Discussion and development of a performance plan

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1.1 JOB SATISFACTION

Job satisfaction describes how content an individual is

with his (or) her job. It is a relatively recent term since in previous centuries

the jobs available to a particular person were often pre-determined by the

occupation of that persons parent. There are a variety of factors that can

influence a persons level of job satisfaction: some of these factors includes-

the level of pay and benefits, the perceived fairness of promotion systems

within the company, the quality of working condition, leadership and social

relationship and job itself.

The happier people are within their job, the more

satisfied they are said to be. Job satisfaction is not the same as motivation,

although it is clearly linked. Job design aims to enhance job satisfaction and

performance methods, which includes job rotation, job enlargement and job

enrichment. Other influences on satisfaction includes the management style

and culture, employees involvement empowerment, and autonomous work

groups.

Job satisfaction is a very important attribute, which is

frequently measured by organization. The most common way of

measurement is the use of rating scale where employees report their reaction

towards their jobs. Questions related to rate of pay work, responsibility

variety of tasks, promotional opportunities, the work itself and co-workers.

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DEFINITION

Job satisfaction has been defined as pleasurable emotional state resulting

from the appraisal of ones job, an effective reaction and attitude towards

ones job.

WEISS (2002) has argued that job satisfaction is an attitude and also points

out that the researcher should clearly distinguish the object of cognitive

evaluation which effects emotions, beliefs and behavior.

This definition suggests that we form attitude towards our

job by taking into account our feeling, our beliefs and our behavior.

REVIEW OF LITERATURE

HARVARD BUSINESS SCHOOL, to find the affects on

various conditions did one of the biggest studies on job satisfaction. These

studies ultimately showed that a novel change in work condition temporarily

increases productivity (called Hawthorne effect). It was later found that this

increase resulted not from new conditions but from the knowledge of being

observed. These findings provided strong evidence that people work for a

purpose rather than pay, which paved the way for researcher to investigate

other factors in job satisfaction.

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MODELS OF JOB SATISFACTION

AFFECT THEORY

Edwin A Lockes range of effect theory (1976) is arguably the

most famous job satisfaction model.the main premise of this theory is that

satisfaction is determined by discrepancy between what one wants in a job

and what one has in a job. Further, the theory states that how much one

values a given facet of work moderates, how satisfied/dissatisfied one

becomes when expectation are/arent met. When a person values a particular

facet of a job, his satisfaction is more greatly impacted both positively (when

expectations are met) and negatively (when expectations are not met),

compare to one who does not value that facet.

DISPOSITIONAL THEORY

Another well-known job satisfaction theory is the dispositional

theory. It is a very general theory, which suggests that people have innate

disposition that causes them to have tendencies toward a certain level of

satisfaction, regardless of ones job. This approach became a notable

explanation of job satisfaction in light of evidence that job satisfaction tends

to be stable over time and across careers in job. Research also indicates that

identical twins have similar level of job satisfaction.

Dispositional theory was the core self-evaluation model,

proposed by TIMOTHY A JUDGE in 1998. Judge argued that there are four

core self- evaluation that determines ones disposition towards job

satisfaction:- Self esteem and general self-efficacy leads to higher work

satisfaction.

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TWO-FACTOR THEORY

FREDRICK HERZBERGs two factor theory also know as

(motivation-hygienic theory) attempts to explain satisfaction and

dissatisfaction are driven by different factors i.e., motivation and hygienic

factors respectively.

Motivating factors are those aspects of jobs that makes people want

to perform and provide people with satisfaction. For example, achievement

in work, recognition, promotion and opportunities. These motivating factors

are considered to be intrinsic to the jobs and work carried out.

Hygienic factors include aspects of working environment such as

supervisory practices, companys policies and working conditions.

While HERZBERGs model has stimulated much research,

researchers have been unable to reliably empirically prove the model, with

HACKMAN & OLDHAM suggesting that HERZBERGs original

formulation of the model may have been methodologically artifact. Further

more the theory does not consider individual differences, conversely

predicting all employees will react in an identical manner to the changes in

motivating/hygienic factors. Finally the model has been criticized that it

does not specify how motivating/hygienic factors are to be measured.

JOB CHARACTERISTIC MODEL

HACKMAN & OLDHAM proposed the job characteristic

model, which is widely used as a frame work to study how particular the job

characteristics impacts on job outcomes including job satisfaction. The

model states that there are five-core job characteristics-

1. skill variety

2. task identity

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3. task significance

4. autonomy

5. feedback

Which has impact on three critical psychological states (experienced

meaningfulness, experienced responsibility for outcomes and knowledge of

actual results) in turn influencing work outcomes, job satisfaction,

absenteeism and work motivation.

The five core job characteristics can be combined to form a

motivating potential score (MPS) for a job, which can be used as an index of

how likely a job is to affect an employees attitude and behavior.

MEASURING JOB SATISFACTION

There are many methods for measuring job satisfaction. By far the

most common method for collecting data regarding job satisfaction is the

LIKERT SCALE. Other less common method of measuring job satisfaction

includes:

Yes/no questions, true/false questions, point system, check lists and forced

choice answer.

THE JOB DESCRIPTIVE INDEX (JDI)

Created by SMITH, KENDALL & HULIN (1969) is a specific

questionnaire of job satisfaction that has been widely used. It measures ones

satisfaction in five facets-

1. pay

2. promotion and promotion opportunities

3. co-workers

4. supervision

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5. work itself

The scale is simple, participants answer either yes or no (or) cannot be

determined. In response to whether given statements accurately describes

ones job.

THE JOB IN GENERAL INDEX

It is an overall measurement of job satisfaction. It is an improvement to job

descriptive index because the JDI focuses too much on individual facets and

not enough on work satisfaction in general.

Other job satisfaction questionnaires includes-

1. MINNESOTA SATISFACTION QUESTIONNAIRE (MSQ)

The MSQ measure jobs satisfaction in 20 facets

and has a long form with 100 questions (5 items for each facet) and short

form with 20 questions (1 item for each facet).

2. JOB SATISFACTION SURVEY (JSS)

It is a 36-item questionnaire that measures 9 facets

of job satisfaction.

3. FACES SCALE OF JOB SATISFACTION.

It is one of the first scales used widely to measure

overall job satisfaction with just one item which participants response to by

choosing a face.

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VARIABLES AND MEASURES

The overall job satisfaction level of faculty members measured

with the help of five dimensions namely job, supervisors, co-workers, pay

and promotion. Information regarding faculty members age, education, job

level, foreign qualification, number of years in the organization and other

sources of income, marital status, sex should also be obtained.

RELATIONSHIP AND PRACTICAL IMPLICATIONS

Job satisfaction is an important indicator of how employees feel

about their jobs and a producer of work behavior such as organizational

citizenship, absenteeism and turnover.

One common research finding is that job satisfaction is correlated

with life satisfaction. Meaning people who are satisfied with life tends to be

satisfied with their job and people who are satisfied with job tends to be

satisfied with their life. However some researcher has found that job

satisfaction is not significantly related to life satisfaction whereas other

variables such as non-work satisfaction and core self-evaluation are taken

into account.

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JOB SATISFACTION AND MORALE

Job satisfaction and morale means to every one of us. Most of the

people dread work and are generally unhappy by the thought of going to

work.

The term job satisfaction refers to an employees general attitude

towards his job. LOCKE defines jib satisfaction as a pleasurable or

positive emotional sate resulting from the appraisal of ones job or job

experiences.

There is a saying, which goes like there is no future in any job,

the future lies in the hands of that person who holds the job.

Nowadays experts in the field of HR assert that it is the

performance of the employees to give satisfaction. Good performance leads

to reward, which in turn leads to satisfaction. An employee can perform well

in his place of work only when he comes to work with a favorable attitude.

But if one asks what determines a favorable attitude?

A favorable attitude is determined by the degree to which the job fulfills

the individuals personal needs and is consistent with his expectations and

values.

A favorable attitude is also determined by the degree to which the job is

rich in its content.

A favorable attitude is further determined by the degree to which the job

needs the approval of the individual reference group.

In other words, attitude of employees determines the

performance and it is the performance, which causes satisfaction. Good

performance gives the individual the feeling of having accomplished

something worthwhile, this in turn leads to satisfaction. The satisfaction of

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employees further increases if the individual concern also receives

recognition, status, power, authority, responsibility, promotion, hike in

salary etc..,

According to ABRAHAM A.KORMAN there are two types of

variable that determines job satisfaction of an individual.

ORGANIZATIONAL VARIABLES

Occupational level: The higher the level of the job the greater the

satisfaction of the individual. This is because higher level jobs carry

greater prestige and self-confidence.

Job content: Greater the variation in job content and less the

repetitiveness with which the task must be performed, the greater the

satisfaction of individual involved.

Considerate leadership: People like to be treated with consideration.

Hence, considerate leadership results in higher job satisfaction.

Pay and promotional opportunities: All other things being equal to

these two variables is positively related to job satisfaction.

interaction in the work group: Interaction is most satisfying when

1. It results in the cognition that other persons attitudes are similar

to ones own, since this permits the ready calculability of others

behavior and constitutes validation of onselfs.

2. It results in being accepted by others.

3. It facilitates the achievement of goals.

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PERSONAL VARIABLES

Age: Most of the evidence on the relation between age and job

satisfaction, holding such factors as occupational level constant, seems to

indicate that there is generally a positive relationship between the two

variables upto the pre- retirement years and then there is a sharp decrease

in satisfaction.

Educational level: With occupational level held constant there is a

negative relationship between the educational level & job satisfaction.

The higher education the higher the reference group which is individual

looks to for guidance to evaluate his job rewards.

Sex: There is as yet no consistent evidence as to whether women are

more satisfied with their jobs than men, holding such factors as job and

occupational level constant. One might predict this to be the case

considering the generally lower occupational aspiration of women.

There have been a number of studies

undertaken by well-known authors on the determinants of job satisfaction.

Some of them are as follows-

1. GENERAL

General working conditions

Union management relations

General quality of supervision

Grievance handling procedures.

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2. FOR YOUNG GROUP

Type of work

Working conditions

Pay

Co-workers

Ease of commuting to work

Advancement opportunities

3. FOR OLDER GROUP

Security

Supervision

Company prestige

Working hours

Recognition

Autonomy

Doing important work

Fair evaluation of work done

Thus it is clear that although the above determinants as given

above more or less ensures the substantial degree of job satisfaction. The

level of satisfaction of employee varies from time to time, situation to

situation, employee to employee, younger group to older group. In other

words, the employer must see that the employees attach lot of pleasure

instead of pain while carrying out their work and this will result in job

satisfaction.

36

2.1 INDUSTRY PROFILE

2.2 COMPANY PROFILE

37

2.1 INDUSTRY PROFILE

The pharmaceutical industry is one of the most profitable

industries in both the US & GREAT BRITAN. Gross profit margin of some

of the leading pharmaceutical companies in recent years has been around 70

to 80 percent.

The global drug market is controlled by corporate behemoths such

as Pfizer, Bristol Myers Squibb, Bayers, Merck & co, Pharmacia, Novartis,

Johnson & Johnson, Abbott Laboratories, American Home Products, Eli

Lilly, Schering Plough, Glaxosmithkline and Allergen. Their market

domination enables them to dictate drug prices. In past year, pharmaceutical

prices have risen faster than the rate of inflation. The fact that there is a very

little price elasticity associated with price increase is a major factor

contributing to high profitability of small pharmaceutical industry. A patient

will not change the demand for the products with a small change in price

when there are no close (or) available substitutes. Actual manufacturing cost

of medicines are relatively low.

The big pharmaceutical companys profits can be even higher due

to limited competition in pharmaceutical industry caused by strict patent

laws (when a company owns a patent for a key drug, profits can mount up

since the company faces no competition) and high barriers for small firms to

enter the industry. In addition, through a recent and on-going waves of

mergers and acquisitions with the big company intensify the process of

consolidation. Also, more frequently strategic alliances are being formed

with small biotech companies in order to reap the new economic benefits.

38

The drug giants cannot keep track of all new development but wants to keep

their pipelines full.

INDIAN PHARMACEUTICAL INDUSTRY: AN

OVERVIEW

The Indian Pharmaceutical industry is a success story providing

employment for millions and ensuring that essential drugs at affordable

prices are available to the vast population of this sub-continent.

- RICHARD GERSTER

The Indian pharmaceutical industry today is in the front

rank of Indias science based industry with wide ranging capabilities in the

complex field of drug manufacture and technology. A highly organized

sector, the Indian pharma industry is estimated to be worth of $4.5 billion,

growing at about 8 to 9 percent annually. It ranks very high in terms of

technology, quality and range of medicine manufactured. From simple

headache pills to sophisticated anti-biotic and complex cardiac compounds,

almost every type of medicines is now made indigenously.

Playing a key role in promoting and sustaining

development in the vital field of medicines, Indian pharma industry boasts of

quality producers and many units approved by regulatory authority in U.S.A

& U.K. international companies associated with this sector has stimulated,

assisted and spearheaded this dynamic development in past 53 years and

helped to put India on the pharmaceutical map of the world.

39

The Indian pharmaceutical sectors are highly fragmented

with more than 20000 registered units. It has expanded drastically in last two

decades.

The pharmaceutical industry in India meets around 70%

of the counties demand for bulk drugs, drug intermediates, pharmaceutical

formulations, chemicals, tablets, capsules, orals and injectibles.

There are bout 250 large units and 8000 small-scale units

which forms the core of pharmaceutical industry in India. They produce the

complete range of pharmaceutical formulations i.e. medicines ready for

consumption by patients and about 350 bulk drugs i.e. chemical having

therapeutic value and used for production of pharmaceutical formulations.

Manufacturers are free to produce any drug duly

approved by the Drug Control Authority. Technologically strong and totally

self-reliant the pharmaceutical industries in India has low cost of production,

low R&D cost, innovative scientific manpower, strength of national

laboratories and increase in balance of trade.

The pharmaceutical industry with its rich scientific talent

and research capabilities, supported by Intellectual Property Protection

Regime is well set to take on international market.

40

ADVANTAGES OF INDIAN PHARMACEUTICALS:

1.COMPETENT WORKFORCE

India has a pool of personnel with higher managerial and

technical competence and also skilled workforce. It has an educated

workforce and professional services.

2. COST EFFECTIVE CHEMICAL SYNTHESIS

Its track record of development, particularly in the area of

improved cost beneficial in chemical synthesis of various drug modules. It

provides a wide variety of bulk drugs and exports sophisticated bulk drugs.

4. LEGAL AND FINANCIAL FRAMEWORK

India has a 53 years old democracy and hence has a solid legal

framework and strong financial market. There is already an established

international industry and business community.

5. INFORMATION TECHNOLOGY

It has a good network of world class education institution and

established strength in information technology.

6. GLOBALIZATION

The country is committed to a free market economy and

globalization. Above all it has 70 million middle class market, which is

continuously growing.

41

7. CONSOLIDATION

For the first time in many years the international

pharmaceutical industry is finding great opportunities in Indian. The process

of consolidation, which has become a generalized phenomenon in the

worlds pharmaceutical industry, which has started taking place in India.

THE GROWTH SCENARIO:

Indian pharmaceutical industry is growing at the rate of 14%

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. Domestic pharmaceutical of year 2002, which accounts for merely

1.3% of the global pharmaceutical sector.

STEPS TO STRENGTHEN THE INDUSTRY:

Indian companies need to attain the right product mix for

sustained future growth. Core competencies will play an important role in

determining the future of many Indian pharmaceutical companies in the post

product-patent regime after 2005, Indian companies in an afford to

consolidate their position will have to increasingly look at mergers and

acquisitions option of either companies or products. This would help them to

offset loss of new product option, improve their R&D effort and improve

distribution to penetrate market.

Research and development has always taken the back seat

amongst Indian pharmaceuticals companies in order to stay competitive in

the future, Indian companies will have to re-focus and invest heavy in R&D.

42

The Indian pharmaceutical industry also needs to take

advantage of recent advances in biotechnology and information technology.

The future of the industry may be determined by how well it markets its

products to several region and distribute risk, its forward and backward

integration, its R&D, its consolidation, co-marketing and licensing

agreement.

PHARMACEUTICAL RESEARCH IS GEARED

TOWARDS:

1.ACTION: Identifying the root cause of the problem, in searching the

effective strategies.

2. CORPORATE POWER: Corporate power projects give an overview of

why corporate behaves as they do and why they need to be opposed.

3.FOOD AND AGRICULTURE: Corporation has consolidated the control

of food production.

43

2.1 COMPANY PROFILE

NATCO pharma limited is an enterprise molded by global

aspirations. This has always demanded a preparedness and long term

organizational vision that can encompass the turbulence and paradoxes of

shifting terms and terrains of business.

BACKGROUND

BEGINNING

Mr. V.C Nannapaneni promoted NATCO pharma in the year

1981 as a private limited company to be in the business of research and

development, manufacturing and marketing of pharmaceutical substance and

finished dosage form for Indian and international markets. NATCO pharma

began operations in 1984 in Andhra Pradesh, India.

FIRST SUCCESS

In the year of its operation it achieved a sales figure of RS 0.5

million. The companys first product was CARDICAP, which is an anti-

anginal drug. Since then the company has introduced many dosage form into

the market. By 1985 it has dosage form in CARDIOVASCULAR, ANTI-

COLD, ANTI-ASTHMATIC & ANTIBIOTIC segments. NATCO has the

credit of having pioneered in TIME RELEASE TECHNOOGY in India.

44

THE JOURNEY

NATCO pharma was ranked 82nd

in sales among Indian

pharmaceutical companies in 1994. NATCO also has the credit of being one

of the largest contract manufacturers in India. Some of the well-known

companies like RANBAXY, Dr. REDDY LABOBORATORIES, JOHN

WYETH etc get their product manufactured by NATCO.

The NATCO pharma grew in size with the mergers of the following three

companies-

NATCO PARENTERALS LIMITED

DR. KARANTH PHARMA LABS PRIVATE LIMITED.

NATCO LABORATORIES LTD.

TODAY

NATCO pharma limited, which began its operation as a single

unit with 20 employees, today it has four manufacturing facilities and

employees around 2273 people. It has an online data for analysis and

decision making. Consistently ranked among the fastest growing

pharmaceutical companies in the country. NATCO is utilizing its collective

experience to kick star its future plans as a global company.

Respected for quality, performance, care, and responsibility

and for creation and minimization of wealth for its shareholder. NATCO

pharma limited, the post merger of organization represents a strategic stage

in NATCO.

45

VISION

NATCO will be a global organization most respected for

quality, services and social commitment in health care and area of business.

MISSION

Indian pharmaceutical industry, with significant international

presence. Today it is more innovative and active than ever across the entire

spectrum in pharmaceuticals - from basic research, bulk actives &

intermediates to finished dosage forms and clinical trials.

In the emerging industry patterns of the twenty-first century,

based on new technologies, NATCO recognizes that innovative product

development has to be complemented with cost effective therapeutic

solutions to address a better informed and a more demanding fraternity.

To achieve this, the company has harnessed all its strengths -

compact productive teams, modern facilities. Its command over chemical

technologies and economies of scale - into a synergistic organic entity,

continuously creating and nurturing high quality products and technologies.

NATCO believes that in the new order of symbiotic drug

industry, it will emerge a powerful player with specialized skills to address

encompassing opportunities in pharmaceuticals. Attracting industry leaders

with the constancy of its purpose.

NATCO's emergence from a major business re-engineering

exercise further fuels its ambition to be among the select top leaders in the

industry with the power to turn shared DREAMS into REALITY.

46

QUALITY POLICY

The Quality policy of NATCO Pharma Limited is to manufacture and timely

supply cost effective quality products to meet Customers ' expectations and

to achieve CUSTOMER SATISFACTION through implementation of ISO

9001: 2000 QMS and WHO GMP on continual improvement basis.

FUNCTIONAL AREAS

MANUFACTURING FACILITIES

Unsurpassed quality and manufacturing dependability

FORMULATION

PARENTERALS

BULK DRUGS

R&D

NATCO pharma enjoys the patronage of many a number of

renowned names in domestic and global pharmaceutical industry.

Its quality conscious efforts and expertise in development and

manufacture of pharmaceuticals have contributed significantly to its

worldwide acceptance.

FORMULATIONS:

NATCO has pioneered the delayed acting timed-release dosage preparation

in India, which remains the company's forte. Its world class pharma facilities

at Kothur, India which is an ISO-9002 certified plant is capable of

manufacturing formulations to International standards using this technology.

47

Tablets, capsules, liquids, dry powder for suspensions, aerosols etc. are

manufactured with utmost care and quality consciousness.

Time Cap Pharma Labs located at Kothur, India one of the group companies

of NATCO manufactures specialty formulations exclusively for leading

pharmaceutical companies of India.

NATCO has modern facilities and very strong capabilities to manufacture

comprehensive range of finished dosage forms including various oral solids,

liquids, inhalers and parenterals with delayed, rapid and sustained acting,

aerosols and transdermal mechanisms for drug delivery.

PARENTERALS:

NATCO's parenteral manufacturing unit at Nagarjunasagar,

India, which is a WHO-cGMP certified plant having ultra modern facility

which follows Good Manufacturing Practices prescribed by the World

Health Organization.It has one of the largest and most sophisticated

manufacturing facilities for sterile products, large and small volume

parenterals, and a whole range of formulations.

BULK DRUGS:

NATCO's Bulk Drug facility at Sanathnagar, India amply

supported by a world-class, state of the art, research lab, is capable of

manufacturing in small quantities, a variety of bulk drug and intermediates,

which comply to International standards. This facility is extremely efficient

in handling complex reactions. The bulk drug facility at Mekaguda, India

commenced commercial production in 1994.

48

NATCO has built up a large infrastructure to undertake

manufacturing in bulk actives and intermediates. With a combined capacity

of 370 KL, from 75 stainless steel and 20 glass lined reactors, these facilities

are well equipped with modern line up of instrumentation, utilities, clean

rooms and environment management systems required to output finished

products of a very high quality. An efficient and modern Quality Assurance

system ensures compliance with the highest quality norms prevalent.

This infrastructure has enabled NATCO emerge very strong,

in areas of custom syntheses and process chemistry.

RESEARCH AND DEVELOPMENT:

NATCO's R & D approach is consolidated into a centralized,

multi-pronged R & D operation as its Research Center focusing on basic

research, custom synthesis, new processes, natural products and effective

dosage delivery systems. The R & D network is received as both an initiator

as well as a facilitator of its knowledge management system, for which

NATCO relies heavily on Electronic Data Management.

If core competence is a bundle of integrated skills and

technology, NATCO's central R & D exemplifies it. NATCO's approaches

have successfully yielded new patentable technologies/processes, adapted

new systems to deliver drugs more effectively and created viable business

options to achieve its objectives.

INFRASTRUCTURE:

30, 000 Sq. ft of laboratory space.

30, 000 Sq. ft of space available for further expansion.

7 laboratories for Synthesis / Process Innovation.

49

4 laboratories for Analytical Method Development & Analytical

Instrumentation.

A laboratory for Natural Actives & Biotech oriented research.

All-Glass unit for Kilogram level scale-up studies.

Centralized Library housing over 3000 books, journals & periodicals.

Computer Database for on-line literature search & patent scan.

FACILITIES:

Equipment for milligram to kilogram level synthesis

Equipment for Semi-Commercial column-Chromatography

Separate multi-kilogram level all-glass facility for scale-up studies

and process consolidation.

Centralized analytical development facility for analytical method

development / validation studies.

R&D CAPABILITIES:

Expertise in Heterocyclic Chemistry.

Organometallic Reagents - Novel Applications and Handling on

Commercial Scale.

Metal Hydride Reagents - Novel Applications and Handling on Up-

Scaling.

Expertise in Catalytic Hydrogenation /Hydrogenolysis /

Dehydrogenation.

Chral Chemistry - Asymmetric Synthesis and Asymmetric Induction.

Optimization Expertise in optical resolutions and methods of

Randomization of Chiral Waste.

50

HUMAN RESOURCE:

Group Leaders with DOCTORAL/POST-DOCTORAL qualifications

trained to lead both innovative & process development chemistry.

Core team Scientists of high caliber & with experience or exposure of

current trends in PROCESS R & D.

Separate up-scaling team with extensive Process plant & Engineering

expertise.

Analytical Integrated Method Development teams with wide experience

in Chemical & Instrumental Methods of Analysis & Method

Validation (CAPILLARY GC, CHIRAL HPLC, LCMS, and DSC).

Dedicated impurity-profiling team for SYNTHESIS,

CHARACTERIZATION and Pooling of impurity samples.

NEW PROJECTS:

Work on new project is progressing as per schedule. The cyto-

toxic production block being established by NATCO organics is expected to

become operational in current fiscal year. The specialty peptide production

block is also expected on stream in the current financial year. The focus in

respect of APIs division lies in introducing niche products and capturing

niche markets. These measures are expected to boost the realizations and

provide good results.

51

OPERATIONAL REVIEW & FUTURE OUTLOOK

FINISHED DOSAGE FORMULATION DIVISION-

The finished dosage formulation unit has turned out

exceptionally good performance, basically driving by the oncology segment.

The company continues to make in road into the segment and now starts as

number one in terms of revenues, from amongst the Indian companies

operating in the segment. Revenues from this segment have crossed RS 6

crores per month and are likely to grow further. During the year 2006-07

revenue from the oncology segment alone grew to rupees 56 crores from

rupees 33 crores during 2006. Revenues from the formulation division grew

to rupees 102 crores. The year 2007 witnessed the launch of number of

products both in oncology and non-oncology segments.

Some of the significant launches include BANDRONE

(injection and tablets) and BORTENNTS & PAMNAT injections in the

oncology segments and anorest tablets in non-oncology segments.

The company has also launched TARANA, world class oral

contraceptives for women, with fewer side effects. It is a combination of

drospironene 3mg and ethinyl estradlol 0.03mg. it is first international brand.

52

WESTERN MARKETS

This company continues to pursue US &EUROPE markets in

its quest for growth and in its pursuit of becoming a significant player in the

global pharma. This company is making an effort to bring to the logical

conclusion, its tie ups agreements for commercialization two ANDA

injectible drug products in the anti-emetic and cancer therapeutic segments.

Efforts to register the companys product in new and niche market are

continuing. With the shifting of all major product lines to DEHRADUN, the

KOTHUR facility would be dedicated exclusively for the products which are

meant to be exported to the US &EUROPEAN markets and for contract

manufacturing of high premium products.

To achieve these objectives, the KOTHUR facility is being

upgraded to include CYTO-TOXIC liquid, injectible facilities, soft capsule

manufacturing facility and a pellet manufacturing facility.

In addition, a formulations development and research

laboratory is being established at NATCO research center, Sanathnagar to

help the finished dosage pharmaceutical formulation division in

development of new drug delivery system and formulation.

New filling facility is established at Nagarjunasagar

US MARKET APPROVALS

The companys application abbreviated new drug application

(ANDA) in respect of ondan setron tablet-an anti-emetic drug.

EXPANSION, GLOBALIZATION AND DIVERSIFICATION

53

NATCO as a part of globalization plant, finalized an

investment proposal for setting up the formulation unit in New Jersey, USA

at an estimate cost of US $6 million. The exim bank of India is likely to fund

team loan finance that is equivalent to US $ 4.80 millions and the company

will invest the balance.

MAIN OBJECTIVES OF THE COMPANY

To increase market shares from0.6% to 1.1%

The goals of the future is to launch high technology, specialized products

balanced by high technology and mass product in order to increase sales,

market shares and returns.

To carry the business out the business to deal with the finished drugs of

pharmaceuticals bulk drugs, chemicals, fuel chemicals, ayurvedic and

cosmetics to do all kinds of consultancy service in pharmaceuticals and

carry on research labs.

The company intends to extract maximum advantage from its R&D wing

and from the collaborative research.

RETAIL BUSINESS

With a view to find a suitable channel for the companys

product in USA and in order to gain first hand knowledge about US market.

It has found its appropriate market to enter retail space in USA through

acquisition of drug stores. It owns and operates retail pharmacy store- called

Nicks drugs in downtown New York, USA.

MARKETING

54

For NATCO, marketing involves the challenges of giving

care, concern and responsibility in a wider range. The demand of

optimization in such a scenario have been met by NATCO through efficient

online information network. NATCO is constantly upgrading its logistics

from global perspectives to achieve this end.

Domestic Marketing

1. Domestic Generic and Branded formulation

2. Domestic bulk drugs

3. Contract manufacturing marketing networks

International Marketing

NATCOS growing international presence currently focus on

the consolidation and expansion of business in India and US. A multi

pronged strategy including joint venture, acquisition, marketing alliances,

manufacturing tie-ups, custom synthesis and other collaborative ventures are

being pursued for long term growth.

1. Export generic formulation

2. Export bulk drug

3. Export horizon

MILESTONES OF NATCO PHARMA-

55

Incorporated - 1981 for manufacture of pharmaceutical formulations.

First full year in Operations - 1984 - sales RS. 0.5 million.

Pioneered Timed Release, a delayed acting sustained release

technology. Achieved a rare feat of introducing the largest array of

timed-release products based on zero order release concept of Micro

dialysis Cell Technology.

Started Parenteral Manufacturing facility at Nagarjunasagar, India -

1986.

Acquired Dr. Karanth Pharma Chemical Labs, a small bulk drug

manufacturer, now known as Natco Research Center.

Established bulk drug and Intermediate facility at Mekaguda, India.

This facility is TGA approved, and certified for its environmental

management systems (ISO-14001). (Today its a US-FDA approved

plant).

State of the art manufacturing facilities - cGMP, ISO 9002 certified

dosage facility.

A wide distribution network, Indian & international.

Merged three of the group companies with the parent, Natco Pharma

Limited - 1995.

Granted US Patent for its manufacturing process of Omeprazole.

Launched anti-cancer drug-Imatinib Mesylate 100-mg capsules under

the brand name - VEENAT, Process developed in-house.

R&D ACHIEVEMENTS

56

1.Center recognized by Department of Science and Technology.

2.Developed Non-Infringing methods for a number of API's over the past

four years.

3.Over 30 Patents are in various stages of filing, review and granting.

4.Evolved cost-effective manufacturing processes for a good number of

intermediates which have been commercialized successfully.

5.An Award has been received for One such cost-effective process for a life

saving Anti-Cancer drug in year 2003.

AWARDS RECIEVED

Recently NATCO pharma bagged National Award for Research and anti

Cancer from Board of Technology and Development for the year 2007

Best invention for inventing anti-cancer drug called IMATINIB

MESYLATE AIIE.

WORLD HEALTH ORGANIZATION certificate for current good

manufacturing practices (cGMP).

ISO : 9002 certification in the year 1994

ISO : 14000 certification in the year 2003

National award to small scale entrepreneur, 1998 instituted by

Government of India, Ministry of Industries, Small industry development

organization.

All India Industrial exhibitions (AIIE) 1986 was awarded for best import

substitution of new product.

National Unity Award

International Promotion Selection Award, 1988 for perfect control drug

delivery system by Government of A.P

57

COMMITMENTS

NATCO TRUST:

NATCO Pharma limited, a large integrated pharmaceutical company,

operating out of Hyderabad, Andhra Pradesh. The family also manages

Natco Trust, which is a is a non-profit charitable organization. The

promoters of NATCO Pharma directly supervise and monitor the activities

of the Trust, with the active assistance and cooperation, - in cash and in kind

from the generous members of the society from India as well as from

abroad.

Natco Trust focuses on development human beings from

both rural and urban areas. The emphasis is on the well being of these

human beings in terms of their health and education, resulting in socio-

economic and overall development of the downtrodden members of the

society.

The activities of the Trust are so structured as to encourage

optimal utilization of the locally available resources for sustainable and

equitable development of people. The geographical areas that are

concentrated upon are the places where the company's manufacturing

facilities are located. In addition, certain backward areas are also selected at

random. During the past several years, the Trust has been able to carry on its

activities:

58

a) Kothur Mandal, Mahaboobnagar District,

b) Mahaboobnagar District

c) Ponnur Mandal in Guntur District

d) Nagarjuna Sagar Belt in Nalgonda District;

e) Muthukur Mandal in Nellore District; and

f) Siddipet Mandal in Medak District, all in the state of Andhra Pradesh.

In addition, some work has also been done in certain slums in and around

Hyderabad city.

The following paragraphs would briefly describe the nature of activities of

the Trust:

1. Health Awareness:

The Trust is actively involved in government initiated Polio

Awareness Campaign in the above districts.

Has initiated a campaign for polio effected individuals by providing

light weight FRO caliper for around 1250 individuals who can walk

now

The Trust has been actively engaged in rendering infrastructure

support (by donating medical equipment and machinery) to reputed

hospitals such as CARE, LV Prasad Eye Research Institute, Sir

Ronald Ross Institute for Tropical Diseases and to Indo American

Cancer Research Institute.

The Trust is a regular supporter to patients suffering from cancer by

donating cancer medicines manufactured by NATCO Pharma

Limited.

59

Every month the Trust supports surgery of a minimum of five children

suffering from Cardiac problems by bearing the relevant cost at NIMS

Hospital, Hyderabad

Children below 15 years suffering from Leukemia are provided with

medical support at M.N.J. Institute of Oncology, Hyderabad.

Under the Governments Care and support program to HIV/AIDS

patients, medical support is provided to the patients, while their

children are provided with food at the Tuberculosis and Chest

Diseases Hospital, Hyderabad.Identification of health disorders

among the children in a phased manner in and around 150

Government schools at and around Hyderabad.

Organization of Rural health awareness camps.

A health center at Mekaguda Village at Kothur Mandal is organized

on a monthly basis, covering 12 villages where Immunization, Anti-

natal Check up, Health Check ups are carried out. Around 1500

patients visit every month.

The Trust is associated with the urban Health Center which co-

ordinates health services in identified slums.

Infrastructure support to the Government Chest Hospital by providing

Flow Cytomenter which helps in investigation for HIV patients to

tests their viral count

60

2. Education Awareness:

Under No to Child Labor program, the meritorious children are

supported with scholarships to pursue education.

The Trust runs a Childs Friendly Education center at one of the

remote villages in Kothur Mandal at Mahaboob nagar District.

It also runs an alternate school as a rehabilitation program for child

labor.

The Trust supports education of around 400 poor tribal children.

Water Sanitation facilities were provided to around 20 government

schools, to fulfil the basic requirements of children;

The Trust also supports Government Social welfare Hostels in

bettering the available infrastructure facilities.

The physical metamorphosis that has been brought about in the

Villages where the Trust has been operating, such as roads,

Electricity, Hospital facilities etc., is one of the proud and pioneering

achievements of the mission in connecting villages to the nearest

towns and to the city through a network system that initiated the

development of the villages.

The Trust is actively and closely associated with the Nizams Institute of

Medical Sciences and has been carrying out various activities in

collaboration with NIMS.

61

PLANT LOCATION

Registered Office and Corporate Headquarters:

NATCO PHARMA LIMITED

NATCO HOUSE

Road No.2, Banjara Hills

Hyderabad-500 033

MANUFACTURING PLANTS:-

PHARMA DIVISION-

Natco Pharma Limited

Kothur Post, Kothur Mandal

Mahaboobnagar District

Andhra Pradesh-509 228

INDIA

CHEMICAL DIVISION-

MEKAGUDA, Kothur Mandal

Mahaboobnagar District


INDIA

62

PARENTERAL DIVISION-

Vijayapuri North, Nagarjuna Sagar

Nalgonda District


INDIA

CHEMICAL-R&D DIVISION-

B-11, Industrial Estate

Sanathnagar, Hyderabad


INDIA

PHARMA DIVISION-

Plot No. 19, Pharma City

Selaqui Industrial Area

Vikas Nagar

Dehradun-248 001.

63

BOARD OF DIRECTORS

1.Sri V.C.Nannpaneni Chairman and managing director

2.Sri G.S.Murthy - Director

3. Dr. B.S. Balaji - Director

4.Smt Durga Devi Nannapaneni whole time director

5. Sri Rajeev Nannapaneni - Director & C.O.O

6. Sri P.Bhaskara Narayana - Director & Chief financial officer

7.Sri Mukul Sarkar - Director-export/import bank of India nominee

8.Mr M. Adinarayana- company secretary and GM (corporate affairs)

64

EMPLOYEE GRADES

EXECUTIVES

E6 GENERAL MANAGER

E5 SENIOR MANAGER

E4 MANAGER

E3 DEPUTY MANAGER

E2 ASST MANAGER

E1 EXECUTIVES

STAFF

S4 JUNIOR EXECUTIVES

S3 ASST. OFFICER/SENIOR ASST./CHEMIST

S2 ASST. CHEMIST

S1 COMPUTER OPERTOR

WORKERS

W7 TECHNICIAN

W6 SENIOR OPERATOR

W5 OPERATOR

W4 JUNIOR OPERATOR

W3 HELPER 1

W2 HELPER 2

W1 HELPER 3

65

3.1 NEED FOR THE STUDY

3.2 OBJECTIVES OF THE STUDY

3.3 SCOPE OF THE STUDY

3.4 DATA ANALYSIS

3.5 METHODOLOGY & SAMPLING

3.6 RESEARCH METHODOLOGY

3.7 LIMITATION

66

3.1 NEED FOR THE STUDY

The present study mainly aims at identifying

the employees job satisfaction in NATCO Pharma LTD. The study is needed

to know how the employees are satisfied in the organization.

The study is needed from the point of view to know the views

and attitudes of the employees towards their satisfaction. It also gives an

opportunity to the employees to express their views about their satisfaction.

The study will help the management to think for new development in

increasing morale of the employees and productivity in the organization.

3.2 OBJECTIVES OF THE STUDY

To study the need and importance of EMPLOYEE JOB

SATISFACTION.

To study how the performance appraisal programs are imparted to the

employee satisfaction.

To make analysis regarding the satisfaction level of the employees

towards the organization.

To make some of the effective suggestion to the management of NATCO

Pharma LTD.

67

3.3 SCOPE OF THE STUDY

The scope is limited to employees satisfaction in the company towards

their job.

The study concentrates on employees satisfaction.

The sample has been collected regarding satisfaction of employees

towards the job.

The sample survey includes employees of higher cadre and workers.

3.4 DATA ANALYSIS

The data is analyzed mainly from the questionnaire. Data

interpretation is done with the help of statistical tool like Bar chart, Pie

diagram and graphs which are all based on the data which is not only

collected from questionnaire but also from companys profile.

The process of analyzing the data will begin with first

collecting the data, which is obtained, from the questionnaire and then

tabulating it. Then the tabulated data is depicted in diagrammatic form that is

in the terms of a graph. Then from the graph an interpretation is made.

68

3.5 METHODOLOGY AND SAMPLING

1. COLLECTION OF DATA

The data that is been collected for the study is from primary

data and secondary data. A random sampling method is taken for the study.

2. SAMPLE STUDY

The study was conducted by taking random sampling

method. The present study is intended to analyze the employee satisfaction

at NATCO Pharma LTD. Due to the availability of limited time and other

reasons, the analysis was conducted with sample size of 50 employees.

3. PRIMARY DATA

Primary data are those which are collected afresh and that

happens to be original in character. The primary data will be collected

through a questionnaire and personal interaction. The data will be collected

through questionnaire method because exact information can be obtained.

This is more useful rather than adopting any other method.

The primary data can be collected by the following methods-

QUESTIONNAIRE

Under this method a well-structured questionnaire is prepared

covering all aspects with respect to the related topics. This may contain both

open and closed-ended questions. The open ended questions are those where

the respondent are free to give their opinions. While in close-ended

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questions the respondent has to answer the questions within the choice

specified. By distributing the questionnaire to the respondent the data is

collected.

OBSERVATION METHOD

By observing the activities being performed by the organization, the

data is collected. Care should be taken that the activity should be observed

for one complete work life style.

4. SECONDARY DATA

The secondary data has been collected from different

sources like NATCO PHARMA LTD manuals, files from different

sections/cells, branches and reading material from different departments in

NATCO PHARMA LTD.

3.6 RESEARCH METHODOLOGY

1. SAMPLING METHOD:

Simple random sampling is a technique of drawing the sample

in such a way that each unit of the population having an equal and

independent of chance.

Sample size : 20

Statistical tool : random sampling method

Sample unit : people belonging to all designations

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3.7 LIMITATIONS

Every effort has been made to attain accuracy in findings.

It is imperative that some limitations cannot be continued. Some of

the limitations that could be traced as follows:

Study was confined to managerial level.

Sample selected was simple random sample restricted to 50 employee.

The study was confined only at MEKAGUDA UNIT.

The sources of information were only through questionnaire.

There is a chance of regency effect.

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4.1 FINDINGS

4.2 SUGGESTIONS

4.3 CONCLUSION

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4.1 FINDINGS

80 % of employees training is given once in a year

With the personal policies in this organization like

1. Education to their children

2. Health care facilities etc..,

3. Facilitates employee development

Senior officer/ executives in this organization take active interest in their

juniors and help them to learn their job.

56% of employees opinion in the organization is that they have freedom

to express the ideas during meetings.

74% of employees opinion is that the safety and health training

programs are conducted effectively.

People lacking competencies in doing their jobs ar helped to acquire

competence rather than being left unattended.

There is a appraisal system in the organization to reward any good work

done or contribution made by employees..

This organization ensures employees welfare to such an extent that the

employees can save a lot of their mental energy for work purose.

The employees are satisfied with the present pay and employees welfare

facilities.

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4.2 SUGGESTIONS

Job rotation in this organization should facilitate employees

development.

The language in which training is imported should be understood by one

and all.

It is better to give more preference to in house experts, as they are more

aware of existing loopholes in the organization.

Most of the products offered by NATCO are not known to consumers so

stress should be laid on advertising.

The psychological climate is to be improved in this organization, so that

it facilitates any employee in developing himself by updating knowledge

and skills related to their job. The promotion decision should be based on

suitability of the promotion rather than on appraisal system.

Motivational activities and policies regarding motivation should be

implemented regularly in order to motivate the employees.

Suggestion box could be used to gather information about training from

employees to encourage participation. Good suggestion can be rewarded.

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4.3 CONCLUSION

After conducting an intense study on employee satisfaction in NATCO we

have arrived at the following conclusion-

There is a high level of awareness among the employees with respect to

benefit and loans provided in the organization.

Majority of the employees is satisfied with the resources provided by the

company.

The satisfaction of employees at NATCO was found to be good.

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QUESTIONNAIRE

76

EMPLOYEE SATISFACTION

QUESTIONNAIRE

ANALYSIS

In analysis part, the study mainly focuses on the employees in this

organization with regards to their satisfaction levels in respect of job in the

NATCO PHARMA LIMITED. The analysis part mainly focuses on

different aspects of satisfaction of employees in the organization. the

analysis part depends upon questionnaire. The questionnaire consists of

questions/variables on the different factors of training level and development

factor levels.

The survey was conducted by taking the sample of 50 and the

questionnaire was given to the employees who had a minimum of three

years of work experience.

The following page depicts the information collected from the

survey and is presented in an easy understandable pie-chart using certain

statistical techniques.

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QUESTIONNAIRES

1. I feel, the job is challenging and interesting.

S/NO NO OF EMPLOYEES AGREE DISGREE UNCERTAIN

1. 20 20 0 0

INTERPRETATION: -

All the employees of NATCO think that their job is challenging

and interesting.

100

0 0

0

10

20

30

40

50

60

70

80

90

100

Agree Disagree Uncertain

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2. In general, I am satisfied about my job.


2. 20 19 0 1

INTERPRETATION: -

Almost all the employee in NATCO are satisfied with their

jobs.

95

0

5

0

10

20

30

40

50

60

70

80

90

100


79

3. I feel I am contributing to NATCOs mission


3. 20 19 1 0

INTERPRETATION:

In NATCO pharma all the employees contribute to achieve

NATCOs mission.

95

5

0

0

10

20

30

40

50

60

70

80

90

100


80

4. Our organization provides good Pay structure.


4. 20 10 8 2

INTERPRETATION: -

50% of employees thinks that NATCO provides

good pay structure.

50

40

10

0

5

10

15

20

25

30

35

40

45

50


81

5. My rewards are revised based on my performance

evaluation.


5. 20 11 6 3

INTERPRETATION: -

55% of employees believe that their rewards are based on

performance evaluation.

55

30

15

0

10

20

30

40

50

60


82

6. Company provides excellent benefits and welfare facilities

for my family and myself.


6. 20 9 7 4

INTERPRETATION: -

Around 45% of employees believe that NATCO

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