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SQUARE

A report submitted to Mrs. Samia Shabnaz in part-fulfillment

of the requirements of the final examination in Organizational Behavior,

Fall semester 2010

Prepared & submitted by

Group: 8

(Section E)

Mithun, Md. Nazmul Hasan

Sony, Kazi Farhana

Baidya, Synthia Dalia

Akter, Tahamina

Helmy Sultana Sawlad

Course teacher

Ruhul Azad Amin

Department of English

Date of submission

7 December 2010

American International University-Bangladesh (AIUB)

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Letter of Transmittal

Date: 07/12/2010

Samia Shabnaz

Department of English

American International University- Bangladesh

Banani, Dhaka.

Subject: Submission of Transmittal.

Dear Sir,

It is a great pleasure for us to submitting the report to you entitled by “SQUARE” as the

largest pharmaceutical company in Bangladesh and it has been continuously in the 1st position

among all national and multinational companies since 1985. Every year a huge amount

foreign currency comes from this sector. It has been a great pleasure for us to work on this

report as it provides many opportunities to gain insights about the Compensation SQUARE

Pharmaceuticals.

We are grateful to you for your continuous guidance in preparing the group project. Finally,

we also believe that this report will satisfy you.

Sincerely yours,

Group 8

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LETTER OF ENDORSEMENT

07 December 2010

To whom it may concern:

We the undersigned, hereby authorize the students of AIUB to act on our behalf in all

company relating to information, including signing of all documents relating to these matters.

Any and all acts carried out by AIUB on our behalf shall have the same affect as acts of our

own.

This endorsement is valid until further written notice from (SQUARE).

Sincerely,

Samson H. Chowdhury

Chairman

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Acknowledgement

By the cordial mercy of Allah, now I am able to submit my report to our honorable madam

Samia Shabnaz. I strongly believe that it would not be possible preparing such a report

without Almighty’s grace.

Now I would like to thank our honorable madam Samia Shabnaz for her keen efforts and

invaluable guidance, helped me to understand, what the modern Compensation System is &

its different concepts, implementation and impact on organization which facilitated the

successful completion of the report.

This acknowledgment will remain incomplete if I don’t thanks to those people who helped

and being corporate with us specially Md. Habibur Rahman (Sr. Asstt. Vice President), Md

Awlad Hossain (Clearing Department, Sr. Officer) & Md. Tamgidul Aziz (Accounts & IT

Department) for helping me to find necessary information regarding the report.

I would also like to express gratitude to my university faculty members. They should be

remembered because they produced the platform of our knowledge.

Finally I am really grateful to the other employees and officers of Mutual Trust Bank for their

help and valuable advice. Again, I like to thank our honorable teacher for giving us such a

chance in completion of the report

Finally, I like to say that, I have prepared this report from my own experience. I am ready to

accept my unwilling errors and omission which belong to me.

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Executive Summary

Pharmaceutical industry is one of the largest industries in our country. Every year a huge

amount foreign currency comes from this sector. Square Pharmaceuticals Ltd., the flagship

company, is holding the strong leadership position in the pharmaceutical industry of

Bangladesh since 1985 and is now on its way to becoming a high performance global player.

It was established in 1958 and converted into a public limited company in 1991. The sales

turnover of SPL was more than Taka 5 Billion (US$ 90 million) with about 15% market share

(April 2003 – March 2004) having a growth rate of about 16%.

Besides fulfilling domestic demand it exports a huge amount of drugs in abroad. It is now

exporting medicine in 20 countries. It has achieved the trust of the domestic and foreign

people.

SQUARE’s Mission is to produce and provide quality &innovative healthcare relief for

people, maintain stringently ethical standard in business operation also ensuring benefit to the

shareholders, stakeholders and the society at large.

As a very large and formal company Square uses different management practices in their

corporate world. It does the works of planning, organizing, leading and controlling.

Square Pharmaceuticals Ltd. follows a systemic way to take a particular decision. Based on

the present & previous available data and information the decision is made, focusing &

predicting the future consequences.

The Planning mechanism of Square involves focusing on the goal and developing the overall

strategy for achieving the goal. Strategy involves long term decision making to get a long

term benefit.

We did SOWT analysis of the Square. Square Pharmaceuticals Ltd. has many things to its

credit as strengths while like any other company in the same industry has some weakness.

Square is always abreast of the market trend and proactive to adopt any market changes and

explore opportunities.

Square divides works to be done into specific jobs and departments, assign tasks and

responsibilities associated with individual jobs, coordinate diverse organizational tasks,

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clusters jobs into units, establish relationship, formal lines authority, allocates and deploys

organizational resources.

Human Resource department plays an important role to develop the most efficient manpower

for the Square. Skilled, efficient, dynamic manpower is one of the most desirable features of

this organization.

Every organization takes different initiatives so that the employees can perform their jobs

efficiently and effectively. Organizations motivate its employees and influence them so that

they can do their best working in full swing.

Leadership is the process of influencing a group toward the achievement of goals. As a

successful company, Square Pharmaceuticals Ltd. practices leadership in its organization for

moving the whole organization towards its goals.

As controlling is a continuous process, Square follows a three step process for controlling:

measuring actual performance, comparing actual performance against a standard, and taking

managerial action to correct deviations or inadequate standards.

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Table of Content

Contents Page NoLetter of Transmittal ILetter of Endorsement IIAcknowledgement IIIExecutive Summary IV

Contents Page No

CHAPTER ONE

Introduction of the Organization 01. Origin of the report 1

02. Brief History of Square Pharmaceuticals Ltd 2

03. Looking Beyond The Horizon 3

04. . Core objectives of Square 3

05 Square Striving For 4

06. 5

07. 6

CHAPTER TWO

Introduction of the Study01. Objectives 7

02. Vision 8

03. Mission 9

04. Scope of the Study 9

05. Methodology 10

06. Limitations of the Study 11

CHAPTER THREE

Analysis and Discussion01. Decision Making Procedure 12

02. Strategy and Planning Mechanism 12

03. SWOT Analysis 13

04. Structure of the Organization 14

05. Human Resource Management 15

06. Motivating employees 18

07. Leadership Practices 20

08. Controlling Process 21

09. Operations and Quality Control 24

10. 43

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11. Survey Result Analysis 44

CHAPTER FOUR

Findings, Recommendation & Conclusion01. Findings 48

02. Recommendation 50

03. Conclusion 52

Appendix 53

Bibliography 54

Origin of the report:

SQUARE Pharmaceuticals Limited is the largest pharmaceutical company in Bangladesh and

it has been continuously in the 1st position among all national and multinational companies

since 1985. The company plays a significant role in producing quality drugs in Bangladesh. It

also plays a vital role in developing the socioeconomic condition of our country by paying a

large amount of tax and taking participation in social activities. As a part of our study

curriculum in BBA course, we have been assigned to conduct a study a organization finding

management practices followed by the company. So we have selected Square for these

characteristics.

SQUARE today symbolizes a name – a state of mind. But its journey to the growth and

prosperity has been no bed of roses. From the inception in 1958, it has today burgeoned into

one of the top line conglomerates in Bangladesh. Square Pharmaceuticals Ltd., the flagship

company, is holding the strong leadership position in the pharmaceutical industry of

Bangladesh since 1985 and is now on its way to becoming a high performance global player.

Introduction Of The Organization

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The company plays a significant role in producing quality drugs in Bangladesh. It also plays a

vital role in developing the socioeconomic condition of our country by paying a large amount

of tax and taking participation in social activities.

SQUARE Pharmaceuticals Limited is the largest pharmaceutical company in Bangladesh and

it has been continuously in the 1st position among all national and multinational companies

since 1985. It was established in 1958 and converted into a public limited company in 1991.

The sales turnover of SPL was more than Taka 5 Billion (US$ 90 million) with about 15%

market share (April 2003 – March 2004) having a growth rate of about 16%.

Looking Beyond The Horizon

SQUARE Pharmaceuticals Limited has extended its range of services towards the highway of

global market. She pioneered exports of medicines from Bangladesh in 1987 and has been

exporting antibiotics and other pharmaceutical products. This extension in business and

services has manifested the credibility of Square Pharmaceuticals Limited.

Core Objectives of Square:

To achieve deep knowledge about the organization.

To fulfill the partial requirement of our course of Introduction to Business &

Management.

To evaluate the management activities of Square Pharmaceuticals Ltd.

To analyze the existing structure, Strategy and planning mechanism, decision-making

process, Human Resource Management systems, Organizational behavioral

environment, Leadership practices, Motivational tools and controlling systems of this

company.

Square Striving For

For top quality health care products at the least cost reaching the lowest rungs of the

economic class of people in the country. Square value our social obligations.

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It owes to its shareholders and strives for protection of their capital as well as ensures

highest return and growth of their assets.

It strives for best compensation to all the employees who constitute the back-bone of

the management and operational strength of the Company through a pay-package

composing salary/wages, allowances, bonus, profit participation, leave salary and

superannuation & retirement benefits.

It strives for best co-operation of the creditors & debtors the banks & financial

institutions who provide financial support when it need them, the suppliers of raw

materials & suppliers who offer them at the best prices, the providers of utilities-

power, gas & water etc. and the customers who buy its products & services by

redeeming their claim in time by making prompt payment and by distributing proper

product on due dates.

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

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

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

anti-environmental behaviors, unethical and corruptive dealings.

It strives for practicing good governance in every sphere of activities covering inter

alia not being limited to, disclosure & reporting to shareholders holding AGM in time,

distribution of dividends and other benefits to shareholders, reporting/dissemination

of price sensitive information, acquisition of share by insiders, recruitment &

promotion of staff, procurement & supplies, sale of assets etc. all that directly and

indirectly affect the interest of concerned groups – the shareholders, the creditors,

suppliers, employees, government and the public in general.

Objective

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Its objectives are to conduct transparent business operation based on market mechanism

within the legal & social frame work with aims to attain the mission reflected by its vision.

Vision

SQUARE Pharmaceuticals Ltd. views business as a means to the material and social

wellbeing of the investors, employees and the society at large, leading to accretion of wealth

through financial and moral gains as a part of the process of the human civilization.

Mission

SQUARE’s Mission is to produce and provide quality &innovative healthcare relief for

people, maintain stringently ethical standard in business operation also ensuring benefit to the

shareholders, stakeholders and the society at large.

Scope of the Study:

In the following pages we sorted the parts in according with the text. At first we gave an

introductory part of Square Pharmaceuticals Ltd. Then we presented the planning part

which includes planning techniques and mechanisms, organization’s strategies and

strategically planning and the SWOT analysis of the organization. The next part includes the

organizing procedures of Square. At the next part we discussed about the motivational tools

and leadership practices in the Square. At the last section we discussed about the controlling

procedure of the company, and then we terminated our report with a summary and

conclusion.

Methodology:

Information used in this paper we collected from related books, journals, periodicals &

annual report etc. After that we went to the Square Centre and met with a managerial officer

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& discussed about the concerned rules & regulation relating to company systems. We also

collected information from website.

Limitations:

There are some limitations that we have faced during preparing the report. The most obvious

limitation is the unavailability of genuine information. Another limitation is lack of available

information source related to this topic. Other limitation is our report is mostly text based.

Structure of the Organization

The formal arrangement of jobs within an organization is the structure of an organization.

Square divides works to be done into specific jobs and departments, assign tasks and

responsibilities associated with individual jobs, coordinate diverse organizational tasks,

clusters jobs into units, establish relationship, formal lines authority, allocates and deploys

organizational resources.

Departmentalization:

The basis by which jobs are grouped together is known as departmentalization. Square

Pharmaceuticals Ltd has established functional structure of organization. The various

functions of the undertaking are first determined and then a functional expert in each is

appointed, who will be responsible for his technical function. Square Ltd has established the

following department for his smooth running.

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Planning department:

After getting production order from merchandising dept, they analyze the production order &

rearrange the orders as per delivery schedule. Then distribute the production order to

respective dept. & take delivery schedule. The planning dept always update production order

& inform merchandising dept about the order status. If any deviation found then they call

meeting with respective dept. & help to come out.

Production department:

After getting production order with ready for delivery schedule then analyze the order &

planning as self dept. Related all technical process prepare and supply in floor and produced

as per buyer requirements. Store & lab related all activities completed by production

department.

Finance department:

This department determines the required fund, calculates the cost of each source, and finally

collects the required fund from the minimum cost source.

Human resource department:

HRD involves planning, recruiting, selecting, orienting, training & developing human

resources in the organization. In order to improve productivity of human input, the Company

continuously provides formal and informal training to the employees at every echelon of

operation and management. During the year under review 2,144 persons received in-house/in

operation/on the job training at home and abroad which will ultimately make great

contribution to the Company's profitability as well their own remuneration in due course.

Accounts department:

They maintain company’s

proper books of accounts.

Budgetary control, matters relating to statutory audit and corporate tax matters.

Prepare of periodic financial statements as prescribed in the applicable act, rules and

relevant laws.

Budget preparation and control.

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Dealing with banks and financial institution in negotiating terms and condition of

short term and long term investment.

Directing company short and long term business plan.

Developing and implementing company’s financials plans and policies.

Preparation of monthly, quarterly, half yearly and annual management reports on

accounts including analysis of variances.

Purchasing department:

Taking all positive steps to purchase as company requirements but sometime raw materials

purchasing is not up to the mark quality.

Hierarchy:

In Square has a system of hierarchy. From top level management to lower level workers are

organized in hierarchy, each lower level one is being controlled and supervised by higher

level one in every department.

Job analysis:

Square has effective practice for job analysis. In working process all related people confirm

jobs and behaviors necessary to perform them .But job analysis by English is difficult to

understand for workers.

Job specialization:

The degree to which tasks are divided into separate jobs is also known as division of labor. In

this organization every employee has job specification but all jobs are not specialized

according to employees’ skill, abilities, performance & experiences.

Span of control:

The number of employees a manager can efficiently & effectively manage is refer to as span

of control. In Square wider span is in production department. As a result it is more efficient in

terms of cost but less effective. Other departments have been reached to a limited range.

When the span becomes too large, employee performance suffers because managers no

longer have the time to provide the necessary leadership and support.

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Square’s Organizational Hierarchy

Managing Director

Chairman

General Manager

ManagerPlanning Dept.

Asst. Manager

Executive

Asst. Manager

Executive

Manager Purchasing

Dept.

Asst. Manager

Executive

Manager Finance Dept.

Manager Lab &

Q.C

Executive

Manager Production Dept.

Manager Production

Asstt. Manager

store

APM

Executive

Supervisor

Operator

Helper

Executive Asst. manager Executive Divisional manager

Manager HRM Dept.

Sr. Executive

Executive

Manager Accounts

Dept.

Executive

Manager Marketing Dept.

Dist. manager

F.M

M. R.

Asst. Manager

Worker

Manager,Factory

188

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Square is one of the dominating companies in Bangladesh. It has been operating its business

operations successfully in different sectors by its long time experience and strong

management process. By its skilled human resource, well defined plan, definite goal and

strong leading process it becomes a leading company in Bangladesh. The company plays a

significant role in producing quality drugs in Bangladesh. It also plays a vital role in

developing the socioeconomic condition of our country by paying a large amount of tax and

taking participation in social activities. Square leads its employees in such a way that they

help organization achieve its goals. It also controls its employees work activities for

improving their work performance. It also controls the quality of its products for preserve its

existing goodwill in the market. In a word Square follows good practices of management in

its corporate world for remaining in the top position in Bangladesh.

Summary

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Square Pharmaceuticals Ltd. is established from conventional method to modern method

by his management policy and better effort of employees. Day by day it will be expanded by

getting more profit. For better management policy within short time Square acquired a

leading position in Bangladesh. This organization is much more effective than others to

identify the weakness it carries as well as to solve them very effectively. It follows a strong

management system so that it can maximize its target. For availability of labor & quality of

product this organization as well as Bangladesh will dominate over competitor in global

market.

1. Management (8th Edition), Stephen P. Robbins & Mary Coulter.

2. Management (8th Edition), Ricky W. Griffin.

3. Annual Report of Square Pharmaceutical Ltd.

4. Mr. Monirul Islam, Senior officer- HRM, Square Pharmaceutical Ltd.

5. www.google.com

6. www.squarepharma.com.bd

7. The daily star.

Conclusion

Bibliography