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INTRODUCTION
The history of performance appraisal is quite brief. It roots in the early 20
th
Century
can be traced to Taylors pioneering Time and motion studies. But this is not very helpful,
for the same may be said about almost everything in the field of modern human resources
management.
As a distinct and formal management procedure used in the evaluation of work
performance, appraisal really dates from the time of the second world war not more than 60
years ago.
Performance appraisal system began as simple methods of income justification. That
is, appraisal was used to decide whether or not the salary or wage of an individual employee
was justified.
The process was firmly linked to material outcomes. If an employees performance
was found to be less than deal, a cut in pay would follow on the other hand, if their
performance was better than the superior expected, a pay rise was in orders.
Little consideration, if any, was given to the developmental possibilities of appraisal.
It was felt that a cut in pay, or rise, should provide the only required impetus for an employee
to either improve or continue to perform well. Sometimes this basic system succeeded in
getting the results that were intended, but more often than not, it failed.
For example, early motivational researchers were aware that different people with
roughly equal work abilities could be paid the same amount of money and yet have quite 1
Indirectly, to help determine reward out comes. That is, the appraisal results are used
to identify the better performing employees who should bet the majority of available merit
pay increases, bonuses, and promotions.
At the other extreme, there are many strong advocates of performance appraisal.
Some view it as potentiality .. The most crucial aspect of organizational life.
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On the other hand, there is a strong rival argument which claims that performance
appraisal must unequivocally be linked to reward outcomes.
Performance appraisal systems began as simple methods of income justification. That
is, appraisal was used to decline whether or not the salary or wage of an individual employee
was justified.
The process was firmly linked to material outcomes. If an employees performance
was found to be less than ideal, a cut in pay would follow on the other hand, if their
performance was better than the supervisor expected, a pay rise was in order.
In many organizations - but not all appraisal results are used, either directly or
indirectly, to help determine reward outcomes. That is, the appraisal results are used to
identify the better performing employees who should get the majority of available merit pay
increases, bonuses, and promotions.

MEANING:-
Performance appraisal is a method of evaluating the behaviour of employees in the
work sport, normally including both the quantitative aspects of job performance.
Performance here refers to the degree of accomplishment of the tasks that make up an
individuals Job. It indicates how well an individual is fulfilling the job demands. Often the
term is confused with effort, but performance is always measured in terms of results and not
efforts.
Definitions:-
Managers often believe that the most significant P/HR outcomes involve the
contributions employers make to the organizations goal attainment. These contributions are
called employee performance, meaning how effectively employees carryout their job
responsibility - Herbert G Heneman
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Performance appraisal has many facts. It is an exercise in observation and judgment.
It is a feedback process, and it is an organizational interventions. It is a measurement
process as well as an intensely emotional process. Above all, it is an inexact, human process.
While it is fairly easy to prescribe how the process should work, descriptions of how it
actually works in practice are rather discouraging.
- Wayne Cascio
Performance appraisal is the process of evaluating the performance and
qualifications of the employees in terms of the requirements of the Job for which he is
employed for purposes of administration including placement, selection for promotions,
providing financial rewards and other actions which require differential treatment among the
members of a group as distinguished from actions affecting all members equally.
- Heyel.


NEED FOR PERFORMANCE APPRAISAL:-
They provide systematic judgments to backup Salary increases, transfers, demotions
or terminations.
Provide information about the performance ranks basing on which decision regarding
salary fixation, confirmation, promotions, transfer and demotion are taken.
They are means of telling a subordinate how he is doing and suggesting needed
changes in his behaviour attitude, stills, or job knowledge. They let him know where
he stands with the boss.
The superior uses them as a base for coaching and counselling the individual.


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PURPOSE OF PERFORMANCE APPRAISAL:-
Performance appraisal aims at attaining the different purposes. They are:
To create and maintain a satisfactory leave of performance.
To contribute to the employee growth and development though training and
development.
To help the superior to have a proper understanding about their subordinates.
To facilitate fair and equitable compensation based on performance.
To facilitate for testing and validating selection tests, interview techniques through
comparing their scores with performance appraisal ranks.
To provide information for making decisions regarding layoff, retrenchment etc.
To ensure organizational electiveness through correcting employee for standard and
improved performance, and suggesting the change in employee behaviour.

IMPORTANCE OF PERFORMANCE APPRAISAL
Provide information about the performance ranks basing on which decision regarding
salary fixation, confirmation, promotion, transfer and demotion are taken.
Provide feedback information about the level of achievement and behaviour of
subordinates, rectifying performance deficiencies and to set new standards of work if
necessary.
Provide information which helps to counsel the subordinate.
Provide information to diagnosed deficiency in employee regarding skill, knowledge,
determine training and developmental needs and to prescribe the means for employee
growth provides information for correcting placement.
To prevent grievance and disciplinary activities.

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ROLE OF PERFORMANCE APPRAISAL IN EFFECTIVE HRM:

Appraising the performance of individuals, groups and organizations is a common
practice performance appraisal is a method of evaluating the behaviour of employees in the
work spot, normally including both the quantitative and qualitative aspects of Job
performance. Performance is normally appraised by the superiors, but recently, peers,
subordinates and customers. Appraisal methods include both quantitative and qualitative.
Employee should be counselled after the appraisal of the performance in order to develop the
performance further.

OBJECTIVES OF PERFORMANCE APPRAISAL:-
To enable an organization to maintain an inventory of the number and quality
of all managers and to identity and meet their training needs and aspirations.
To determine increments rewards, and provide a reliable index for promotions
and transfers to positions of greater responsibility.
To maintain individual and group development needs and to evaluate
effectiveness of training and development programs.
To plan career development human resources planning based on potentialities.







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FUNCTIONS OF PERFORMANCE APPRAISAL:-
Levinson has given their functions of performance appraisal.
It selects to provide an adequate feed back to each individual for his or her
performance.
It purposes to serve as basis for improving or changing behaviour towards some more
effective working habits.
It aims at providing data to managers with which they may judge future job
assignments and compensation. He stresses the fact that the existing systems of
performance appraisal dont serve any of these functions effectively but focuses on
outcome of behaviour.

FEATURES OF PERFORMANCE APPRAISAL:-
Performance appraisal is the systematic description of an employees job relevant strength
and weaknesses.
To find out how well the employee is performing the Job and establish a plan of
improvement.
Appraisal is arranged periodically according to definite plan.
Performance appraisal is not Job evaluation, performance appraisal refers to how well
someone is doing the assigned job.
Performance appraisal is continuous process in every large scale organization.






CONTENTS WHICH AREA USED TO MEASURE THE
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PERFORMANCE OF AN EMPLOYEE:-
Regularity of Attendance.
Self expression; written and oral.
Ability to work with others.
Leadership styles and abilities.
Initiative.
Technical skills.
Technical ability / Knowledge.
Ability to grasp new things.
Ability to reason.
Originality and Resourcefulness.
Creative Skills.
Area of Interest.
Area of Suitability.
Judgment skills.
Integrity.
Capability for assuring Responsibility.
Level of acceptance by subordinates.
Honesty and sincerity.
Thoroughness in Job and organizational knowledge.
Knowledge of systems and procedures.
Quality of suggestion offered of improvement.


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When to Appraise?
Informal appraisals are conducted whenever the supervisor or personnel managers
feel it necessary. However, systematic appraisals are conducted on a regular basis, say for
example, every six months

THE EVALUATION PROCESS:-
Stole observes that The p
rocess of performance appraisal follows a set pattern, viz., a mans performance is
periodically appraised by his superiors.
Usually, the resulting plan is then reviewed of a higher echelon of management, was
it may be challenge, changed or added to, but of the discussion and debate emerges a
development plan tailored to the individuals unique needs.
ESTABLISH PERFORMANCE STANDARDS

COMMUNICATE PERFORMANCE EXPECTATIONS TO EMPLOYEES

MEASURE ACTUAL PERFORMANCE

COMPARE ACTUAL PERFORMANCE WITH STANDARDS

DISCUSS THE APPRAISAL WITH THE EMPLOYEE

IF NECESSARY, INITIATE CORRECTIVE ACTIONS
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METHODS/ TECHNIQUES OF PERFORMANCE
APPRAISAL:
Several methods and techniques of appraisal are available for measurement of the
performance of an employee.
METHODS OF PERFORMANCE APPRAISAL


Traditional methods Modern Methods

TRADITIONAL METHODS:-
STRAIGHT RANKING METHOD:-
It is the oldest a simplest method of performance appraisal, by which the man and his
performance are considered as an entity by the rates. No attempt is made to fractionalize the
rate or his performance, the whole man is compared with the whole man i.e. the ranking
of a man in a work group is done against that of another. This is the simplest method of
separating the most efficient from the least efficient, and relatively easy to develop and use.

MAN TO MAN COMPARISON METHOD:
This technique was used but the USA army during the First World War. By this
method certain factory are selected for the purpose of analysis (such as leadership,
dependability and initiative), and a scale is designed but the rates for each factor. A scale of
man is also created for each selected factor. The each man to be rated is compared with the
man in the scale and certain scores for each factor are awarded to him.

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GRADING METHOD:
Under this system, the ratter considers certain features and marks them accordingly to
a scale certain categories of worth are first established and carefully detained. The selected
features may be analytical ability, cooperativeness, dependability, self-expression, job
knowledge, judgment, leadership and organizing ability, etc. They may be a) Outstanding, B)
Very good, C) Good or average, D) Fair.

GRAPHIC OR LINEAR RATING SCALE:
This is the most commonly used method of performance appraisal under it, a printed
form, one for each person to be rated.
Accordingly to Juices, these factors are: employee characteristics and employee
contribution. In employee characteristics are included such qualities as initiative, leadership,
co-cooperativeness, dependability, industry, attitude, enthusiasm, loyalty, creative ability etc.
The rating scale method is easy to understand and easy to use, and permits a statically
tabulation of scores. A ready comparison of score among the employee is possible. These
scores indicate the worth of every individual it is the most common evaluation tool in use
today.
FORCED CHOICE DESCRIPTION METHOD:-
This method was evolved after a great deal of research conducted for the military
services during world War-II. It attempts to correct a rates tendency to give consistently high
or consistently low ratings to all the employees.
The use of this method calls for objective reporting and minimum subjective
judgment. Under this method, the rating elements are several sets of pair phrases or
adjectives relating to Job proficiency or personal qualifications.

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FORCED DISTRIBUTION METHOD:-
Joseph Tiffin evolved this method after statistical work. This system is used to
eliminate or minimize rates bias, so that all personnel may not be placed at the higher and or
at the lower end of the scale. It requires the rates to appraise an employee according to a pre-
determine distribution scale.
The good point of this system is that by forcing the distribution in this manner, the
problem of different appraisers using different parts of the scale is avoided. The method is
highly simple to understand and very easy to apply in organizations.

CHECK LIST:
Under this method, the rate does not evaluate employee performance, he supplies
reports about it and final rating is done but the personnel department. A series of questions
are presented concerning an employee to his behaviour. The rates, then, check to indicate if
the answer to a question about an employee is positive or negative.

FREE ESSAY METHOD:
Under this method, the supervisor makes a free form, open-ended appraisal of an
employee in his own words and puts down his impression about the employee. He takes not
of these factors.
Relations with fellow supervisors and personnel assigned to him.
General organization and planning ability.
Job knowledge and potential.
Employee characteristics and attitude.

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There are several advantages of this method. An essay can provide a deal of
information, especially if the supervisor is asked for instance, to give two or three
examples of each judgment he makes. The explanations will give specific information
about the employee, and can reveal even more about the supervisor.

CRITICAL INCIDENT METHOD:
This method was developed following research conducted by the armed forces in the
United States during World War-II.
The basis of this method is the principle that There are certain significant acts in
each employee behaviour and performance which make all the difference between success
and failure on the job.
This performance appraisal method provides an objective basis for conducting a
discussion of an individuals performance.

GROUP APPRAISAL METHOD:
Under this method, an appraisal group rates employees, consisting of their supervisor
and three or four other supervisors who have some knowledge of their performance. The
supervisor explains to the group the nature of his subordinates duties.
The group then discusses the standards of performance for that Job, the actual
performance of the Job holders, and the causes of their particular level of performance and
offers suggestion for future improvement if any.
The advantage of this method is that it is through, very simple and is devoid of any
basis, for it involves multiple Judges. But it is very time counselling.


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FIELD REVIEW METHOD:-
Under this method, a trainer employees from the personnel department interviews line
supervisors to evaluate their respective subordinate. The appraiser is fully equipped with
definite test questions, usually memorized in advance, which puts to the supervisor.
This system is useful for a large organization and does not suffer from the
weaknesses, which are evident in other systems. The main defect is that it keeps two
management representatives busy with the appraisal.

CONFIDENTIAL REPORTS:-
Assessing the employees performance confidentially is a traditional method of
performance. Under this method, superior appraises the performance of his subordinates
based on his observations, Judgment and intuitions. The superior keeps his judgment and
reports confidentially. In other wards the superior does not allow the employee to know the
report and his performance. Superior writes the report about his subordinates strengths,
weakness, intelligence, attitude to work, sincerity, commitment, punctuality, attendance,
character, conduct, friendliness etc. This method suffers from a number of limitations.

MODERN METHODS:-
BEHAVIOURALLY ANCHORED RATING SCALE (BARS):-
The behaviourally Anchored Rating Scales (BARS) method combines elements of the
traditional rating scales and critical incident methods. Using BARS, Job behaviours from
critical incidents effective and ineffective behaviours are described more objectively. The
method employees individuals who are familiar with a particular job to identity its major
components.
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ASSESSMNT CENTERS:-
This method of appraising was first applied in German Army in 1930. Latter business
and industrial houses started using this method.
Under this method, many evaluators join together to Judge Employee performance in
several situations with the use of a variety of criteria. It is used mostly to help select
employees for the first level (The lowest) supervisory positions. Assessments are made to
determine employee potential for purposes of promotion.

HUMAN RESOURCE ACCOUNTING:-
Human resource accounting deals with cost of and contribution of human resources to
the organization cost of the employee includes cost of man power, planning, recruitment,
selection, induction, placement, training, development, wages and benefits etc.
This technique has not developed and still it is in the transition stage.

MANAGEMENT BY OBJECTIVES (MBO):-
Peter F Duckers has evolved this method. MBO is potentially a powerful philosophy
of managing and an effective way for operational sing the evaluation process. If was
described only recently as the larger range in performance appraisal.
Management by objectives can be describes as a process where by the superior and
subordinate manages of an organization jointly identify its common goals, define each
individuals major areas of responsibility in terms of results expected of him and use these
measures as guides for operating the unit and assessing the contributions of each of its
members.


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360 DEGREE PERFORMANCE APPRAISAL:-
The appraisal may be any person who has through knowledge about the Job alone by
contents to be appraised, standards of contents and who observes the employee while
performing a Job. The appraiser should be capable of determining what is more important
and what is relatively less important. He should asses the performance without bias. The
Appraisers are supervisors, peers, subordinates employees themselves users of service and
consultants. Performance Appraisal by all these parties is called 360
0
performance
appraisal.















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INTRODUCTION
This chapter outlines the need, importance and scope of the study. Also the chapter
speaks about various objectives of the study. The chapter enlightens the methodology
adopted by the researcher in sampling and sample design, data collection methods and
tools used in data analysis and interpretation.

NEED FOR THE STUDY
Provide information about the performance ranks basing on which decision regarding
salary fixation, confirmation, promotion, transfer and demotion are taken.
Provide feedback information about the level of achievement and behaviour of
subordinate. This information helps to review the performance of the subordinate,
rectifying performance deficiencies and to set new standards of work if necessary.
Provide information which helps to council the subordinate.
Provide information to diagnosed deficiency in employee regarding skill, knowledge,
determine training and developmental needs and to prescribe the mean for employee
growth provides information for correcting placement.
To prevent grievances and in disciplinary activities.





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SIGNIFICANCE OF THE STUDY:
It will help to find out the performance appraisal techniques which are used in
Organization
It improves the efficiency of an organization
It helps in knowing the opinion of the employees about performance appraisal
It provide information which helps to council the sub-ordinates
It prevent grievances and in-discipline
It provide information which helps in reviewing the performance of sub-ordinates

OBJECTIVES OF THE STUDY:
The major objectives of the present study are performance appraisal under taken by HETERO
DRUGS LTD.,
The primary objective of performance appraisal is to help each man handle his current
job better.
To find out the performance appraisal techniques which are used in the organization
New employees are evaluated as a measure to recruit them as well as determined their
initial wage rates.
Existing employees are evaluated with a view to ascertaining lay-off, transfers,
Promotions (Or) demotions, pay change allied issues.
To improve the efficiency of an enterprise by attempting to mobilize the best possible
efforts from the individuals employed in it

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RESEARCH METHODOLOGY:
a)SAMPLING PROCEDURE:
Universe:
The universe of the present study constitutes the total numbers of employees is
5000 working in different departments with different designations.
Sample Size:-
A sample size of 150 employees are selected on purposive basis with due
consideration of executives and supervisors.
Sampling method:-
The sampling method used is questionnaire method to collect data from the
employees
b) SOURCES OF DATA COLLECTION:
Primary Data:-
The data regarding the opinion on performance appraisal was directly collected from
the employees of the firm. A questionnaire was prepared and about 50 employees as a
sample groups were interviewed. They were assured confidentiality of data provided by
them.
Secondary Data:-
The Secondary data i.e. established, location and capacity etc., were collected from
the managements annual reports, circulars and pay rolls. And some other data was collected
from web-site of HETERO DRUGS LTD.

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c) ANALYSIS OF DATA
The data collected has been analysed by using simple percentages and graphs.

d)PLAN OF THE STUDY:
Chapter 1 deals with the article frame work of performance appraisal.
Chapter 2 deals with the objectives and methodology.
Chapter 3 deals with the industry and company profile.
Chapter 4 deals with the data analysis and interpretation.
Chapter 5 deals with the finding and suggestions.

LIMITATIONS OF THE STUDY:
The study has been confined to 8 weeks and so it cannot reveal the exact trends of
performance appraisal.
This study is limited to a particular area of HETERO DRUGS LIMITED

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INDUSTRY PROFILE:
INTRODUCTION TO BULK DRUG INDUSTRY:
Since the achievement of independence, India pharmaceutical industry registered a
substantial progress and has become one of the countrys leading industries. India is now
providing large quantities of varied bulk drugs and pharmaceutical products of late.
Especially during 80s India acquired a status of one of the major exports of drugs and
pharmaceutical in the international market.
Prior to the launching of second five-year plan, the manufacture of pharmaceuticals
was limited largely to processing of bulk-imported drugs in to tablets, capsules and other
formalities. Pharmaceuticals are medicinally effective chemicals, which are converted to
dosage forms suitable for patients to imbibe. In it basic chemical from, pharmaceuticals are
called bulk drugs and the final dosage forms are knows as formulations. Usage of
Pharmaceuticals is governed by the underlying medical science. The four primary medical
sciences are as under:

Allopathic or modern medicine has gained global popularity.
Ayurvedic, an ancient Indian science, mainly uses herbal remedies.
Unany, having Chinese Origin is prevalent in South East Asia.
Homeopathy, founded by a German Physician, was fairly popular in the early 19
th

century.
PATENTS:
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Patents are a vital aspect of the global pharmacy industry. Patent protection is
essential to spur basic R&D and make it commercially viable. But, only the developed
nations endorse product patents. Most third world countries have patent laws but enforcement
is totally less. Some developing matins like India, Egypt and Argentina allow only process
patent registration. As a result pharmacy R&D is concentrated amongst the pharmacy Macs
in USA, Japan, Europe. The leading MNCs have geographically widespread market reach
spanning almost the entire globe. Here, their high R&D costs can be spread over a large user
base.
A researcher undertakes patent registration once a molecule shows some promise of
therapeutic effectiveness. Patent life counter starts running from the day the patent
application is made. The patent office then states the process establishing that the molecule is
unique. The steps involved are:
Within 18 months of filing the application, a brief write up of the molecular
structure and its therapeutic utility is published as a public document.
Patent office thereby invites objections, if any from third parties e.g. competitors.
Objections received are conveyed to the applicant who has a chance to defend or
modify his claim to originality.
The modified claims are republished and once again objections are invited.
Once the patent office is satisfied about the applicants claim, it grants the patent.
The whole process takes 4-5 years due to significant backlog in the patent registration
office. Once a patent is granted on one of the developed nations. E.g. European patent office
covers a large part of the European subcontinent. NEW DRUG APPROVAL (NAB):
Prior to launching its products in any country, a pharmacy company undertakes patent
registration to protect its own interest. To protect the interests of the consumers, it is
necesssary that the drug authorities in the country approve the product. Mostly the process for
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seeking approval is initiated alongside the patent registration process. An NDA (New Drug
Application) is field with the drug authorities such a FDA in US or Drug controller in
India,detailing the new molecules therapeutic properties. The clinical trials are carried out in
3 stages.
Animal toxicity (testing on animals)
Trails on few select volunteers.
Trails on large scale on hospitals/institutions.
Drug authorities approval has to be taken at each stage and only when all three trail
stages successfully completed can the product be launched. Once a new product has been
launched by developed countries like USA, Japan or Europe, it takes relatively lesser time to
get approval from drug authorities in another country.
Global price drug process varies from country to country for number of reasons
including patent regulations government controls, income difference, currency exchange
fluctuations etc
Patent Regulations: Patents provide the innovator exclusivity of manufacture over the
life of the patent. To maximize gains pharmaceuticals companies charge high premium on
their under patent products. As patent laws are stringent only in the developed nations
accordingly formulations prices too are much higher in these markets. A comparison of
formulation prices between India, Pakistan, USA and UK is given in annexure.
Government control:- Due to lax of patent laws in develo-0ping counties, local players
are able to infringe upon the original patent holders right without payment of royalty. Hence,
the cost to manufacture of reverse engineered Pharmaceuticals is significantly reduced. To
prevent undue profiteering by local Pharmaceutical companies, the governments in such
countries often impose controls on popularly used drugs and formulations. Even some major
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industrialized countries of Europe distort the market mechanism by markets like USA, as
companies try to enhance sales / profits by charging what the traffic bears.
Income Disability:- In developing nations with low per capita income and low standard
of living, pharmacy MNCs are faced with the choice of either selling products at artificially
low prices or denying patients the benefits of drug and its impact.
Due to fear of piracy and low product prices in third world countries, most MNCs are
reluctant to introduce their top-of-the-line products in these places. So, patients in these
countries compulsory lose out on better treatment option.
Majority of the MNCs conducts research on those diseases that affect the population
in developed nations while tropical diseases get low priority.
Wide variations in pharmacy prices between developing nations have resulted in
increased resistance to runaway healthcare costs in the developed nations, especially USA.
Within a therapeutic segment, generic substitutes to the under-patent drugs generally exist.
Though often lesser erective, they are able to reduce the most of treatment significantly. This
methodology has been gaining popularity in last few years. Managed Health care, as it called,
is akin to medical insurance and it usually follows the principle of encouraging generic
substitutes to curtail medical expenses. Developing nations that impose price controls reduce
the competitiveness of innovation. While price control low drugs prices, they do not
necessarily reduce health care costs.
WTO: - Due to pressure from the developed countries, across the worked uniformity in
patent laws is being implemented under WTO (World Trade Organization earlier GATT i.e.
General Agreement on Tariffs & Trade). Presently, different countries have different patent
types and life period. WTO had decided upon a product patent life of 20 years in all
countries.
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However, to ensure a smooth transition and provide local players in the developing
countries, ample time from gearing themselves, a moratorium up to the year 2005/ AD has
accorded product patent protection even in countries like India or Argentina.
However,existing pharmaceuticals and new products that will be introduces in the interim
period will all continues to be reverse engineered in nations which do not have product patent
laws.

GLOBAL SCENARIO:-
ORGIN:
Quinine extracted from the cinchona tree bark was used to treat malaria way back in
the year 1619. But, sir Alexander Flemings of penicillin in 1929 can be considered the real
foundation of modern Pharmaceutical research. Next major breakthrough came in 1932 with
the syntheses of sulphonamides in Germany be klarer and mietzsch. The 15 years period
between 1938 and 1953 became known as the age of antibiotics, due to unprecedented
number of new anti-infect ant agents introduced during the period..
Benefit to Mankind:-
Between 1920 and 1960, the death rate, due to disease, in a year fell from 12,120
noses per million people to 8,800 no permission persons. Every 4 years since 1965, one
additional year has added to life expectancy at birth due to advances in pharmacy R&D.
Presently, in USA, the average life expectancy is over 75 years. As antibiotics enabled people
to survive more advanced ages, researches focused on cell biochemistry to fine cures for
more complex chronic diseases: Drug researches are now targeting to cure the underlying
causes of diseases that are rooted in the human molecular structure.
GROWTH:-
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Pharmaceutical is a continuous growth industry, immune to economic recession and
commodity cycles. Rising populations, new disease incidence or resurgence of certain
diseases spurs that growth. Therapeutic usage of Pharmaceuticals varies across the globe.
Hypertension and cardiac diseases like typhoid, tuberculosis etc., are largely prevented in
developing nations.


INDUSTRY SIZE:-
The global pharmaceuticals industry, presently valued as US $ 305 bin, is projected to
grow at a CAGR of 8% pa in the next 5 years. In 1998 market grew by 7% as against 6.6% in
the previous years. Growth rates differ across nations, with the developing nations like South
Korea, Taiwan, India etc., and notching high growth in the range of 12-15% pa. this can be
attributed to healthcare cost containment pressure keeping pharmaceuticals prices low like
developed countries, while export opportunities and low domestic per capita consumption
have provide higher growth potential in the developing nations.

INDIAN SCENARIO:
DRAWBACKS:
In the 50 years independence, the Indian pharmaceutical industry has evolved
significantly. Initially, the MNCs had a near monopoly. They imported and marketed
formulations in India, mainly low cost generics for the masses and also few specialties, life
saving, high priced products. With the government increasing pressure against imports of
finished products, the MNCs set up formulation units and continued importing the bulk
drugs. In the 60s the Indian Government laid the foundation of the domestics
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pharmaceutical industry by promoting Hindustan Antibiotics Ltd., (HAL) and Indian drugs.
However, MNCs maintained a lead due to backing of their global R&D. High cost for basic
research deterred local players (in the private sector).
1970 A REVOLUTIONARY YEAR:-
The Indian patent act (IPA) was introduced. This has been one of the single most
important factors to spur the domestic pharmaceutical industry. Under the IPA (Refer
Annexure1), substances used ion foods and pharmaceutical could not be granted product
patents. Only process patents were allowed for a period of 5 years from date of patent grant
or 7 years from date of filing for patent, whichever was earlier. Process modifications to
develop MNCs bulk drugs were far easier for the local players and there was an influx of
domestic manufactures, which first started making bulk drugs and then progress to
formulations. For local players a wide possible portfolio mix was possible portfolio mix was
possible while the MNCs were constrained to their patent companys product range. With
the IPA, cost of local manufacture reduced, so also, absence of royalty payments on reverse
engineered drugs.
The Indian Government also introduced Drug Price Control Order (DPCO) in 1970.
The DPCO effectively put a ceiling on process of version mass-usage bulk drugs and their
formulations so as to prevent any undue profiteering. This further deterred the MNCs as
selling their products uproar in their home counters. So, MNCs curtailed new product
launches, giving further scope to Indian players. FERA (LATE 70s): MNCs were
compelled to reduce holding in their Indian ventures to 40%, else comply with export
obligations to retain a maximum 51% stake. As a result some MNCs curtailed the scope of
their operations. This further strengthened the position of local pharmaceutical companies.
PRESENT SCENARIO:
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Over 20,000 registered pharmaceutical manufactures exist in the country. The
market share of MNCs has fallen from 75% in 1971 to around 35% in the Indian
pharmaceutical market, while the share if Indian companies have increased from 20% in 1971
to nearly 65%. Pusses have almost lost completely.
The secret has undergone several policy as well as attitudinal changes over the past
two years. It was one of the major beneficiaries from the budget proposals. Some of the
positive steps taken were:
Pharmaceutical industry as knowledge based industry. The government has plans to
increase the investment in research and development.
Rationalization of excise duty and reduction in interest rates in export financing.
Additional deductions under income tax laws for R&D expense.
Foreign direct investments permit unto 74% through automatic route.
Setting up to high level committees to review the drug policy for strengthening
R&D capabilities, reducing the priced control regime.
Besides the Indian parliament has enacted the required changes in the Indian patent
act 1790 (IPR) regarding mailbox arrangement and Exclusive Marketing Right (EMR). For
while the main pharmacy companies have recorded a measure of 1.4% increase in sales and
7.4% fall in profits, the Indian pharmacy companies have recorded a 21% growth in sales
companies has decreased from 1.8% if sales to 1.6% in case of MNC pharmacy companies
has increased 3.8% to 4.4%.
So while the MNC companies did not make many new launches (make a hue & cry
about increasing competition from the generics, delay in patent regime, unfavourable price
cuts). But the Indian companies too, everything in stride and went out all cylinders firing-
launching new products, entering the generics market, reorganizing the marketing structure,
28

focusing on growth segments like Cardiac, Diabetic, and Psychiatry among a host of other
initiatives.
Indian pharmaceutical exports, among the top three contributors to the world
pharmacy trade, are poised to grow 25% this year to touch $ 1.5 billion, according to CII
estimates.
The country is potential to rank among top three in the world as suppliers of the
generic drugs by 2010, of the government paves way for creating a conductive business
environment by framing new policies for the sector, said Ranbaxy Chie Executive Officer
D.S. Barr.

SWOT ANALYSIS FOR THE INDIAN PHARMA INDUSTRY:-
STRENGTHS:
Cost competitiveness.
Well-developed industry with strong manufacturing base.
Well Established Network of Laboratories and R&D Infrastructure.
Access to pool of highly trained scientists, both in India and abroad.
Strong marketing and distribution network.
Rich Bio-Diversity.
Competencies in chemistry and process developments.
WEAKNESS:
Low investments in innovative R&D.
Lack of resources to compete with other MNCs for New Drug Discovery research
and to commercialize molecules on the world wide basis
Lack of strong linkages between industry and academia.
Lack of culture of innovation in industry.
29

Low medical expenditure and healthcare spend in the country.
Inadequate regulatory standards.
Production of spurious and low quality Drugs tarnishes the image of the industry at
home.

OPPURTUNITIES:
Significant export potential.
Licensing deals with MNCs for NECs and NDDs.
Marketing alliances to sell arrangements with MNCs.
Contract manufacturing India as a centre for international clinical trail.
Niche player in global pharmaceutical R&D.
THREATS:
Products patent regime poses a serious challenge to domestic industry unless it
invests in research and development.
R&D efforts of India pharmaceutical companies hampered by lack of enabling
regulatory requirement.
Drug price control of India pharmaceutical companies from generating inevitable
surplus.
Export effort by procedural hurdles in India as well as non-tariff barriers imposed
abroad.
Lowering of tariff protection




30

COMPANY PROFILE:
Today HETRO DRUGS LIMITED is a name, epitomizes hard work, experience and
success.
A relatively young company that is making its presence felt and making rapid
progress nationally and internationally.
Involved in the manufacturing of active pharmaceutical ingredients and finished
dosage forms, Hetero is one of its kinds of the very few companies, which have been able to
carve a niche in the pharmaceutical industry, given the present scenario where it requires a
right blend of intellectual strength, core competencies and a precise foresight for the future.
Hetero has come a long way since its inception in the year 1993 to be recognized as a
strong player in the field of pharmaceutical, as a result of its combined strength in research,
manufacture and marking.

Established in the year 1993, with the motto to be the best in the API manufacturing,
Hetero today embodies the vision of a top notch player in developing and commercializing
products catering to a variety of therapeutic categories, integrating into a leading finished
dosage manufacturer.
31


True to the statement, Where the Future Started Yesterday, with a foresight on the
current trends in the pharmaceutical Market, Hetero has grown from strength to strength,
combining its Research strengths, Manufacturing capabilities and Human Resources and well
established quality management system.
With full-fledged marketing capabilities, the company has been able to market its
products in over 80 countries in Asia, Middle East, Eastern Europe and Latin America. With
its compliance to the most stringent requirements, Hetero has today gained foothold to market
several of its APIs in the United States, Canada and Europe.
With all nine manufacturing facilities supported by excellent infrastructure and
compliance to the GMP requirements, Hetero has crossed numerous milestones in a
comparatively short period since its inception.
HETERO GROUP
HETERO DRUGS LIMETED
HETERO LABS
HETERO RESEARCH FOUNDATION
SYMED LABS
GENX PHARMA
HETERO HELTH CARE

32

FOUNDER
The spirit and brain behind the story of hetero is its founder Dr. BPS Reddy, a
scientist who started the company drawing immense from the vast and rich experience he
gained during his stint laboratory where he was instrument in developing and
commercializing processes of several APIs.
The company was started by him with a vision to be recognized as an aggressive
company the combines its strength of R&D and manufacturing with definite advantages in
terms o f cost and chemistry with a strong emphasis on quality of products.
The untiring efforts of the chairman saw hetero develop process for several products
at relatively low cost, thus making it possible for several life saving drugs to be available at
affordable prices meeting all the regulatory and quality norms.
With the organization having reached a point where it is identified among the widely
recognized companies the chairman is now focusing on given new dimensions to the
company in terms of exploring possibilities of further growth, exploring new horizons field of
pharmaceutical development and evolving strategies to take the company to greater heights.
MILESTONES/AWARDS
The company has been scaling New Heights on a conditional basis. These
Achievements have been the result of concerted efforts on the part of different functions
within the organization to achieve the organizational goal of being a leader.
In its path to success. Hetero has seen many a milestone being crossed and achieved
many awards on various fronts. Awards for exemplary work in R&D and marketing are just a
few names.



33

A track of few events that saw hetero reaching its Zenith of glory are:
National Award for best efforts in Research And Development from the department of
scientific and Industrial Research Ministry of Science and Technology Government of
India, in the year 1996.
Highest Exporter award (for the year 1999) against stiff competition from
internationally recognized domestic competitors.
Approval of the API facilities by USFDA for compliance to CGMP norms
Approval of the finished dosage facilities by who for the supply of Anti-retroviral
drugs.

VISION&VALUES
Hetero visualizes itself as an aggressive player in the global pharmaceutical scenario,
supplying generics developed, combining intellectual property, research strengths and strong
human resource input.
The company values the concept of having social responsibilities in the course of its
assent to greater heights. It strongly believes in focusing on customer requirements and
delivering the products at the right pace.
Hetero considers its human resources as the core of all its capabilities and believes in
tapping and honing the talents of its members to reach the zenith of success.
It believes in continuous evaluation and improvement in all the factors that contribute
in transforming the organization into a global force to reckon with.
Hetero takes due cognizance to the fact that the processes that it develops should be
all eco-friendly and should not result in and consequence that harms the ecological harmony.


34



MISSION

Heteros mission is to be a globally acclaimed pharmaceutical company, meeting
the requirements of healthcare imbibing the philosophy of both commercial and social
concerns, driven by research and manufacturing capabilities.

Hetero API Facilities are designed to meet the best of global standards for an API
Facility.
These states-of-the-art facilities cater to the growing demand of manufacturing a large
spectrum of APIS.
Heteros production muscle stems from its endeavours to install plant, equipment,
systems and personnel that portray the best in the Indian pharmaceutical industry.
Professional teams equipped with cutting-edge technology come together in developing,
commercializing and delivering latest intermediate and active pharmaceutical ingredients
across the globe.
Heteros state-of-the-art plant, which conforms to stringent CGMP guidelines,
facilitates pilot and large-scale production. This has enabled it to deliver a wide range of APIs
of international standard and intermediate chemicals for diverse healthcare applications.


35

FINISHED DOSAGES
The finished dosage flagellates of Hetero are designed to match the best globally.
The facilities house the best of the equipment in terms of design and capacity. The
approval by several regulatory authorities and the approval by WHO, Geneva stands a
testimony of the fast that serious efforts are made to ensure that every activity being taken up
in these facilities are in compliance with the requirements in terms of quality and integrity of
the products being manufactured.
MANUFACTURING CAPABILITIES
Type of Reactors Glass, Glass-Lined and Stainless Steel
Reactors sizes
250-10,000 LTR Commercial Plant
5-250 LTR Pilot Plant
Total Reactor Volume 1000 kilo litre
Temperature Range -80
0
c to 300
0
c
Pressure Range Up to 50 KG/CM
2


Analytical Strength of Hetero Group
1. HPLCs (with PDA facility)
2. GCs (with Head space facility)
3. Infer Red Spectrophotometers
4. Ultra violet Spectrophotometers
5. Particle size analyzer
36

6. Digital polar meters
7. Differential Scanning Calorimeters
8. P-XRD
9. NMR
10. GCMS


QUALITY
The approval of heteros API facility by USFDA and finished dosage facility buy
WHO bear a testimony to this fact.
All the activities at Hetero right from the receipt of raw materials to dispatch of the
finished products are carried out in accordance to a well-oiled quality management system.
The importance of having a strong quality based system has been recognized by the
organization due to which every individual in each department understands his/her
responsibilities and carries them out with utmost care avoiding any confusion, thus delivering
the best results.
In addition, talking about quality of the product itself, the company has evolved the
systems to implement GMPs in the manufacture of the product to protect the safety, quality
and integrity. The approval of Heteros API Facility by USFDS and Finished Dosage Facility
by WHO bear a testimony to this fact.
37


RESEARCHES AND DEVELOPMENT
Heteros emphasis has always been on Research and Development. The emphasis was
to ensure that the processes being adopted for the products are cost effective, safe to handle
and with optimum advantage in terms of yield and quality.
Having laid solid foundation towards the end haters R&D approach has also taken
cognizance of the present scenario where stringent patent regime is under implementation
heteros team of scientists has been and is involved in developing non-in fringing process for
its products. With its ability to explore new heights and achieve the best hetero has been able
to file patents for several of its processes.
Given its research capabilities, Hetero has today initiated contract research. Towards
the end, the company has already evolved its strategies and is into discussions with renowned
companies for carrying out the contract research. Custom synthesis is one area where the
company has been concentrating on and is initiating work on several projects.
In addition to the above, the company is now on the threshold of commencing basic
research activities to develop and screen new chemical entities for different therapeutic
categories.



38

STTENGTHS:
Strong emphasis on Research and Development
Ability to develop processes for a large range of therapeutic categories.
Ability to orient and adapt to the changing facets of industry, particularly in terms of
Regulations, Intellectual property and Manufacturing capabilities.
Cohesive team of skilled professionals in all wings related to research, manufacture
and marketing.
A strong commitment towards the society to provide timely support by providing life
saving drugs at relatively low costs, short span of time.
TECHNOLOGY ABSORPTION, ADAPTION AND INNOVATION
The companys R&D division is continuously engaged in the research of new
products and improving the process of existing products. Once the technology is developed
the R&D team will hand over the same to production team for the commercial production.
Benefits derived as a result of the above efforts e.g. process improvement, cost
reduction, product development, quality improvement, import substitution etc. the continuous
up gradation and adoption of technology, benefits the company in the form of good quality,
better yields and cost reduction.
SPECIFIC AREAS IN WHICH R&D CARRIED OUT BY THE
COMPANY
During the year 2006-2007, research and development activity is carried out in
respect of the following products:
Product Therapeutic Use
Donepezil Hcl Anti-Alzhemers
Nitazoxanide Antiriarrheals
Tolterodine Tartrate Urinary incontinence
39

BENEFITS DERIVED AS A RESULT OF THE ABOVE R&D
Perceptible reduction in costs and increase in productivity in respect of the
manufacture of certain bulk drugs and intermediaries. The R&D efforts have facilitative the
company to file several DMFs in regulatory markets like U.S.A, Europe Union.
FUTURE PLAN OF ACTION
The company proposes to upgrade the R&D facilities continuously in live with
international standard and put more accent on the development of pharma products which are
cost effective and prevailing patent legislation. The R&D activates are also proposed to
diversity in to imitation of new drugs discovery. Custom synthesis and contract research in
the year to come. The company stared R&D activity on development of finished dosages for
regulatory markets.

KEY MANAGEMNT PERSONNEL:
Dr. B. Parthasaradhi Reddy (Chairman & Managing Director)
B. Nagi Reddy (Director-Executive)
M. Pera Reddy (Director-Finance)
A.V. Narasa Reddy (Director-Corp.Tech)
J. Sambi Reddy (Director-Production)
C. Bhaskar Reddy (Director-Quality Control)
M. Srinivasa Reddy (Director)
COMPANY SECRETARY
S. Vasu Reddy
All directors have been considered as key management personnel as they are involved
in planning, directing and controlling the activities of the reporting enterprises

40

BULK DRUGS:
Bulk drugs are medicinally effective chemicals. They are derived from 4 types
intermediate (Raw materials) namely:
Plant derivatives (Herbal Products)
Animal derivatives e.g. insulin extracted from bovine pancreas.
Synthetic chemicals
Biogenetic (Human) derivatives e.g. Human insulin
Bulk drug discovery requires intensive and expensive research, so new drugs are
patented by the innovator to ensure commercial gains on his R&D investment. When a drug
goes off patent it becomes generic. Bulk drugs can be broadly categorized as
Under patent
Generic of off patent.
A patent provides exclusivity of manufacturing / licensing to thee discoverer i.e.
patent holder for a stipulated time period.
FORMULATIONS:
Doctors, post-diagnosis to cure a disease or disorder in the patient primarily
prescribes formulations. To prevent misuse / incorrect administration, most formulations are
disabused by pharmacies only under medical prescription and these are called ethical
products. However, some formulations such as pain balms, health tonics etc can also be
purchased by user directly.
These are called over-the-counter (OTC) products. Formulations can be categorized as per
three route of administration to patients, viz.
Oral i.e. tablets, syrups, capsules, powders etc., taken internally
Topical i.e. ointment, creams, liquids, aerosols that are applied on the skin.
Potentials i.e. sterile solutions injected in an intravenous or intramuscular fashion.
41

MANUFACTURING PROCESS:
Bulk drugs are prepared by appropriate chemical reactions of natural/Synthetic
intermediaries under controlled conditions.
Formulations manufacture is a branch mixing process. Right dosage of bulk drug
(active ingredient) is compounded with compatible substances, to make the formulations
palatable. Packed as per the physical form-bottle (for liquid), blister strips (for tablets /
capsules) or ampoules (for powers), each formulation pack has the expiry date and storage
instructions printed on it. Stringent quality control is exercised at all stage of Therapeutic
segments.
For ease of prescription, bulk drugs and their formulations are classified as per there
and use i.e. therapeutic effectiveness against a particular disease or ailment. .






42

1. Awareness of the performance appraisal system of their organization















S.No

OPTIONS

NO. OF RESPONDENTS

% OF RESPONDENTS

1.

Yes

110

73.3%

2.

No

40

26.6%

TOTAL

150

100%
43







Interpretation
It was observed that 26.66% of respondents are not aware of the performance
appraisal system, 73.33% of them are aware of the performance appraisal system.






0%
10%
20%
30%
40%
50%
60%
70%
80%
Yes No
44

2. The feeling of an employee in their organization.












S.NO

OPTIONS

NO.OF
RESPONDENTS

% OF
RESPONDENTS

1.

Proud

40

26.7%

2.

Satisfactory

90

60%

3.

Dissatisfactory

20

13.3%

Total

150

100%

45








Interpretation
It was observed that 26.7% of the respondents are feeling proud employees of their
organization, 60% of respondents are satisfactory and 13.3% are dissatisfactory.







0%
10%
20%
30%
40%
50%
60%
70%
Proud Satisfactory Dissatisfactory
46

3. Any monitory and non monitory benefits given for outstanding performance















S.NO

OPTIONS

NO.OF
RESPONDENTS

% OF
RESPONDENTS

1.

Yes

120

80%

2.

No

30

20%

Total

150

100%
47







Interpretation
It was observed that 80% of the respondents are agreed and 20% of them are
disagreed, towards their monitory and nonmonetary benefits given for outstanding
performance.






0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Yes No
48

4. Agreeing with the performance appraisal helping them to develop










S.NO

OPTIONS

NO.OF
RESPONDENTS

% OF
RESPONDENTS

1.

Strongly agreed

90

60%

2

Agreed

20

13.3%

3.

Disagreed

40

26.6%

4.

Strongly Disagreed

0

0%

Total

150

100%
49








Interpretation
It was observed that 60% of the respondents are agreed with the performance
appraisal helping them to develop, 13.3% of the respondents are disagreed, 26.7%
respondents are strongly agreed and no one has the strongly disagreed.




0%
10%
20%
30%
40%
50%
60%
70%
Strongly agree Agree Disagree
50

5. Opinion on the present performance appraisal system in their organization.













S.NO

OPTIONS

NO.OF
RESPONDENTS

% OF
RESPONDENTS

1.

Excellent

35

23.3%

2.

Good

80

53.3%

3.

Neutral

20

13.3%

4.

Bad

15

10%


Total

150

100%
51







Interpretation
It was observed that 23.3% of the respondents are feeling excellent 53.3% of
respondents feeling good, 13.3% of the respondents are feeling neutral and 10% of the
respondents are feeling bad.






0%
10%
20%
30%
40%
50%
60%
Excellent Good Neutral Bad
52

6. Thinking performance appraisal improves motivation and job satisfaction


S.NO

OPTIONS

NO.OF
RESPONDENTS

% OF
RESPONDENTS

1.

Yes

135

90%

2.

No

15
10%


Total

150

100%















53










Interpretation
It was observed that 90% of the respondents are feeling performance appraisal
improves motivation and job satisfaction and 10% are feeling that it is not so.





0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Yes No
54


7. The satisfaction of an employee with the training and development programme in their
organization.


SL.
NO.

OPTIONS

NO. OF
RESPONDENTS

% OF
RESPONDENTS

1.

SATISFACTORY

25

16.7%

2.

UNSATISFACTORY

15

10%

3.

NEUTRAL

110

73.3%


TOTAL

150

100%



Interpretation
It was observed that 16.7% of the respondents are satisfactory, 10% of people are
feeling un-satisfactory and 73.3% of people are neutral.








55























Interpretation
It was observed that 90% of the respondents are feeling performance appraisal
improves motivation and job satisfaction and 10% are feeling that it is not so.




0%
10%
20%
30%
40%
50%
60%
70%
80%
Satisfactory Dissatisfactory Neutral
56

8. Feeling about the team-work of their organization.


SL.
NO.

OPTIONS

NO. OF
RESPONDENTS

% OF
RESPONDENTS

1.

GOOD

35

23.3%

2.

BAD

20

13.3%

3.

SATISFIED

95

63.3%


TOTAL

150

100%












57








Interpretation
It was observed that 23.3% respondents are feeling good, 13.3% of the
respondents are feeling bad and 63.3% are satisfied.






0%
10%
20%
30%
40%
50%
60%
70%
Good Bad Neutral
58

9. The satisfaction of an employee with communication process in their organization.


SL.
NO.

OPTIONS

NO. OF
RESPONDENTS

% OF
RESPONDENTS

1.

SATISFACTORY

40

26.6%

2.

UNSATISFACTORY

25

16.6%

3.

NEUTRAL

85

56.6%


TOTAL

150

100%












59








Interpretation
It was observed that 26.6% of respondents are feeling satisfied, 16.6% of
people are feeling unsatisfied and 56.6% people are feeling neutral.







0%
10%
20%
30%
40%
50%
60%
Satisfactory Dissatisfactory Neutral
60

10. The performance of an employee improves after process of performance appraisal



S.NO

OPTIONS

NO. OF
RESPONDENTS

% OF
RESPONDENTS

1.

Yes

130

86.7%

2.

No

20

13.3%


Total

150

100 %




Interpretation
It was observed that 86.7% of the people improving talent and 13.3% are people
feeling not like that.






61








Interpretation
It was observed that 26.6% of respondents are feeling satisfied, 16.6% of
people are feeling unsatisfied and 56.6% people are feeling neutral.





0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Yes No
62

11. The satisfaction of an employee with their performance rated by their superior.


S.NO

OPTIONS

NO. OF
RESPONDENTS

% OF
RESPONDENTS

1.

Yes

125

83.3%

2.

No

25

16.7%


Total

150

100 %
























63











Interpretation
It was observed that 83.3% of people agreed and 16.7% are people feeling not like
that.






0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Yes No
64


12. Evaluating the worker appraisal in their company.


S.NO

OPTIONS

NO OF
RESPONDENTS

% OF
RESPONDENTS

1.

Regular Attendance

43

28.6%

2.

Leadership Qualities

15

10%

3.

Sincerity

35

23.3%

4.

Hard Working

57

38%


Total

150

100%








65







Interpretation
It was observed that 28.6% of respondent are regular attendance, 10% of
people are having leadership qualities, 23.3% are having sincerity and 38% are hard working.







0%
5%
10%
15%
20%
25%
30%
35%
40%
Regular attendence Leadership qualities Sincearity Hard working
66


13. The thinking of an employee their organization policies are emissive.


S.NO

OPTIONS

NO OF
RESPONDENTS

% OF
RESPONDENTS

1.

Nil

90

60%

2

25%

45

30%

3.

50%

15

10%

4.

75%

0

0%


Total

150

100%









67









Interpretation
It was observed that 60% of respondents are feel no politics are there, 30% are
feel 10% politics in their company.






0%
10%
20%
30%
40%
50%
60%
70%
Nil 25% 50%
68

CHI-SQUIR TABLE

Gender Vs Designation







Gender Satisfied Non satisfied Total
Women
30 20 50
Men
70 30 70
Total
100 50 150
Oi
E
i
O
i-Ei
(O
i-Ei)
2
(O
i-Ei)
2
E
i
30 33.33 -3.33

11.08 0.33
20 66.66 -46.66 2177.15 32.66
32.99
69

Designation Vs Satisfaction

Designation Satisfied Unsatisfied Total
Chemist 60 20 80
Market
representative
40 30 70
Total 100 50 150




O
i
E
i
O
i-Ei
(O
i-Ei)
2
(O
i-Ei)
2
E
i
60 53.33 6.67 44.48 0.834
20 23.33 -3.33 11.08 0.474
1.308
70



71



SUMMARY:
INTRODUCTION:
Appraising the performance of Individuals, groups and organizations is a common
practice of all societies. While in some instances these appraisal processes are structured and
formally sanctioned, in other instances they are an informal and integral part of daily
activities. In social interactions, performance is conducted in systematic and planned manner
to achieve wide spread popularity in recent years.
OBJECTIVES OF THE STUDY:
The major objectives of the present study are performance appraisal under taken by HETERO
DRUGS LTD.,
The primary objective of performance appraisal is to help each man handle his current
job better.
To find out the performance appraisal techniques which are used in the organization
New employees are evaluated as a measure to recruit them as well as determined their
initial wage rates.
Existing employees are evaluated with a view to ascertaining lay-off, transfers,
Promotions (Or) demotions, pay change allied issues.
To improve the efficiency of an enterprise by attempting to mobilize the best possible
efforts from the individuals employed in it



72

RESEARCH METHODOLOGY:
a)SAMPLING PROCEDURE:
Sample Size:-
A sample size of 50 employees are selected on purposive basis with due
consideration of executives and supervisors.
Sampling method:-
The sampling method used is questionnaire method to collect data from the
employees
b) SOURCES OF DATA COLLECTION:
Primary Data:-
The data regarding the opinion on performance appraisal was directly collected from
the employees of the firm. A questionnaire was prepared and about 50 employees as a
sample groups were interviewed. They were assured confidentiality of data provided by
them.
Secondary Data:-
The Secondary data i.e. established, location and capacity etc., were collected from
the managements annual reports, circulars and pay rolls. And some other data was collected
from web-site of HETERO DRUGS LTD.
c) ANALYSIS OF DATA;
Data analysis was done through simple percentages and graphs.
d)PLAN OF THE STUDY:
A study will bring the general opinion of the employees and employees about the
performance appraisal being used and to improve them according to the expectations of the
employees and employers.
73

FINDINGS:.
73.3% of the respondents said that they were aware of the performance appraisal
system of their organization
60% of the respondents said that they felt satisfied as an employee in their
organization
80% of samples said that monitory and non-monitory benefits given for outstanding
performance
60% of the respondents said that they agreed with the performance appraisal helping
them to develop
53.3% of the respondents said that they felt good about the performance appraisal
system in their organization
90% of the respondents said that their performance appraisal improves motivation and
job-satisfaction
73.3% of the respondents said that they were neutral with the training and
development program me in their organization
63.3% of the respondents said that they felt neutral about team work in their
organization
56.6% of the respondents said that they felt neutral with communication process in
their organization
86.7% of the respondents said that performance of employee improves after process
performance appraisal
83.3% of the respondents said that they satisfied with their performance rated by their
company
38% of the respondents said that evaluation of the works appraisal by hard working
60% of the respondents said that they felt that there is no politics in their company
74

Over all their contribution towards organizations is highly considerable which
generally results and maintain good human relation and monitoring personnel
development.
Finally we can conclude that employees are satisfied with HR and performance appraisal
of HETERO DRUGS LTD.

















75

SUGGESTIONS:
The organization should more focuses on training and development programmes.
The organization should focus on more opportunities for personal growth of an
employee.
The management should focuses on improving the team work of an employee.
The management should focuses on improving the communication process of the
organization.
The management should more focuses on performance appraisal system to develop
employee talent.
The management also should focuses on the appraisal methods.
The organization should focus on the total avoidance of the politics.












76

ANNEXURE
QUESTIONNAIRE

1. Name of the Employee :
2. Designation :
3. Department / Branch :
4. Age / Gender :

1. Are you aware of the performance appraisal system of your organization? [ ]
a) Yes
b) No

2. How do you feel as an employee in this organization? [ ]
a) Proud
b) Satisfactory
c) Dissatisfactory

3. Are any monitory and non-monitory benefits given for outstanding performance? [ ]
a) Yes
b) No

4. Do you agree with the performance appraisal helping you to develop? [ ]
a) Agreed
b) Disagreed
c) Fully Agreed
d) Fully disagreed

5. What is your opinion on the present performance appraisal system in the organization?

a) Qualification [ ]
b) Experience
c) Commitment
d) Worthiness

6. Do you think performance appraisal improves motivation and job-satisfaction? [ ]

Yes
No
.


77

7. Are you satisfied with the training and development programmed in
Your organization?
[ ]
Satisfactory
Unsatisfactory
Neutral

8. How do you feel about Team-work in your organization? [ ]
a) Good
b) Bad
c) Satisfied.

9. Do you satisfied with communication process in your [ ]
Organization?

Satisfactory
Dissatisfactory
Neutral

10. Do you think that performance of an employee improves after process of performance
appraisal?
[ ]
Yes
No

11. Are you satisfied with your performance rated by your superior?
[ ]
a) Yes
b) No

12. How do you evaluate the workers appraisal in your company?
[ ]
a) Regular attendance
b) Leadership qualities
c) Sincerity
d) Hardworking.

13. Do you think your organization politics is emissive? [ ]
a) Nil
b) 25%
c) 50%
d) 75%



78


BIBLIOGRAPHY

C.B.MAMORIA & S.V.GANKAR, Personnel Management, Himalaya Publishing
House, Mumbai, 2007.
K ASWTHAPPA, Human Resource & Personnel Management, Tata Mc Graw - Hill
Publishing Company Ltd, New Delhi, 2002.
P.SUBBA RAO, Essentials of Human Resource Management and Industrial Relations,
Himalaya Publishing House, Mumbai, 2006.

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