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 1 st 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 No
Letter of Transmittal I
Letter of Endorsement II
Acknowledgement III
Executive 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 Study
01. 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 Discussion
01. 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
11. Survey Result Analysis 44
CHAPTER FOUR
Findings, Recommendation & Conclusion
01. Findings 48
02. Recommendation 50
03. Conclusion 52
Appendix 53
Bibliography 54

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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.

Introduction Of
The Organization

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.
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%.

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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.

 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-

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 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

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.

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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
& 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.

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 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.

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

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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.
 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:

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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

Chairman

Managing Director

General Manager

Manager Manager Manager Manager Manager Manager Manager

Planning Purchasing Finance Production Dept. Marketing HRM Accounts
Dept. Dept. Dept. Dept. Dept. Dept.

Asst. Manager Asst.

Asst. Manager Sr. Manager
Asst. Manager Manage Manager Asstt. Executive
Executive r Lab & Production Manager
Executive Executive
Q.C store
Executive Executive

Executive Asst.
Executive
manager
Worker Executive

APM Divisional
manager
Manager,Factory
Dist.
manager
Executive

Supervisor
F.M

Operator M. R.

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Helper
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 Summary

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

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 Conclusion

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.

Bibliography

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.

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