A Report on Performance Appraisal & Employee Satisfaction in Pharmaceutical Company

Executive Summary

The Pharmaceutical sector plays a vital role in underpinning the economic development of a country. This study attempts to evaluate job satisfaction of employees in different pharmaceutical companies. It focuses on the relative importance of performance appraisal & job satisfaction factors and their impacts on the overall job satisfaction of employees. Both primary and secondary sources of information have been considered as a data collection process. Primary data was collected through checklist and personnel interview. At present, in Bangladesh, there are 204 national pharmaceutical companies and only 7 multinational or foreign companies operating.

In our survey we found Level on work conditions, Level on Pay and Promotion, Level on Fairness, Level on Job Security, Level on Relationship with co-workers, Level on Relationship with immediate supervisor; we also found the procedure of performance appraisal & employee job satisfaction in multinational pharmaceuticals [include: GLAXO, & Roche] & local pharmaceuticals Company [includes: BEXIMCO & SQUARE].

In the overall job satisfaction summary we focused on the satisfaction with interpersonal relations, satisfaction with compensation package (salary, fringe benefits), satisfaction with professional effectiveness, overall job satisfaction.

The results suggest that the factors had satisfactorily explained job satisfaction and that the policy makers and managers should focus on the factors that affect employee job satisfaction, if they want to enhance their businesses. Based on the results for the standardized values, we are able to see that work conditions, fairness, promotion, and pay, are key factors affecting pharmaceuticals companies employees' job satisfaction.

Results of the study reveal that a good performance appraisal system, work environment and good work conditions can increase employee job satisfaction and the employees will try to give their best which can increase the employee work performance.

Abstract

The Pharmaceutical sector plays a vital role in underpinning the economic development of a country. This study attempts to evaluate job satisfaction of employees in different pharmaceutical companies. It focuses on the relative importance of performance appraisal & job satisfaction factors and their impacts on the overall job satisfaction of employees. It also investigates the impacts of pharmaceutical type, work experience, age, and sex differences on the attitudes toward job Satisfaction. The result shows that salary, efficiency in work, fringe supervision, and co-worker relation are the most important factors contributing to job satisfaction. The overall job satisfaction of the employees in pharmaceutical sector is at the positive level. This research was mainly undertaken to investigate on the significance of factors such as working conditions, pay and promotion, job security, fairness, relationship with co-workers and supervisors in affecting the job satisfaction. This paper presents a comprehensive diagnosis of job satisfaction indices of pharmaceutical business, the factors causing the dissatisfaction & suggestions to improve them.

There is greater recognition that distinctive competencies are obtained through highly developed employee skills, distinctive organizational cultures, management processes and systems. To attain such recognitions HR plays a key role and one of the important aspects of HR process affiliated with the above objective is performance appraisal process. In this study an attempt has been made to understand the performance appraisal process of pharmaceutical companies in Bangladesh. The repercussion of this study reveals the performance appraisal process and eventually concludes with some implications for pharmaceutical companies of Bangladesh to make the present performance appraisal process more effective and objective oriented.

Keywords: Performance appraisal, Job satisfaction & Pharmaceutical Company.

Introduction

In today's intensely competitive and global marketplace, competitive advantage lies not just in differentiating a product or service or in becoming the low cost leader but in also being able to tap the company's special skills or core competencies. Especially for pharmaceutical industry skilled and efficient employees are must as it requires specialized, technical and, scientific knowledge and expertise and there is zero tolerance in terms of developing quality products & services. To attain such objectives HR plays a vital role and one of the most used tools by HR in order to ensure skilled and efficient employees is performance appraisal. Performance appraisal may be defined as a structured formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in which the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills development. Performance appraisal is evaluating an employee's current and/or past performance relative to his or her performance standard

On the other hand, Job satisfaction describes how content an individual is with his or her job. There are a variety of factors that can influence a person's level of job satisfaction. Some of these factors include the level of pay and benefits, the perceived fairness of the promotion system within a company, the quality of the working conditions, leadership and social relationships, the job itself. Other influences on satisfaction include the management style and culture, employee involvement, empowerment and autonomous workgroups. Job satisfaction is a very important attribute which is frequently measured by organizations. The most common way of measurement is the use of rating scales where employees report their reactions to their jobs. Questions relate to relate of pay, work responsibilities, variety of tasks, promotional opportunities the work itself and co-workers. Some questioners ask yes or no questions while others ask to rate satisfaction on 1 - 5 scale where 1 represents "not all satisfied" and 5 represents "extremely satisfied".

In our findings some organizations maintain their formal evaluation system because they consider performance evaluation to be fundamental to organizational effectiveness. It is better to maintain the visibility of a formal program because; it may help to improve systematically the fairness, validity, usefulness and reliability of the appraisal process.

According to them the purpose of