Project Report On Compensation Management In Biological E.

Limited
In the Partial Fulfillment of the Requirement of Post Graduate Diploma in Management in Human Resource

Submitted By: P.Bala Krishna

PROJECT REPORT 2009-2011

ACADEMY OF MANAGEMENT STUDIES KISMATHPUR, KALIMANDIR

DECLARATION

I Bala Krishna declare that the project report entitled COMPENSATION MANAGEMENT in BIOLOGICAL E. LIMITED is an original and bonafide work done by me during the academic year 2009-2011. This is being submitted in the partial fulfillment of the requirement for the award of degree of the POST GRADUATE DIPLOMA OF MANAGEMENT from ACADEMY OF MANAGEMENT STUDIES. The matter embodied in this report has not been submitted for the award of any other degree or diploma.

Place: Hyderabad

Date:

ACKNOWLEDGEMENT

I deem it a great privilege to thank all those people who helped me to complete this project work. I express my sincere thanks to the management of the ACADEMY OF MANAGEMENT STUDIES and our respected Head of the department Mohammad Babar Zamaan for giving me this opportunity to undertake the project work.

I am deeply obliged to my project guide Mr. SWAMI REDDY, without whose guidance and encouragement at all levels , the study wouldnt have been completed. All those employees of B E deserve special thanks for their cooperation and help in the collection of necessary and relevant material for this work. Also, I do thank and remember my friends for their effort and helping hand.

I express my profound thanks to Sabah Fatima, Hyderabad, for giving me valuable advice and guidance and sparing valuable time in clarifying various points raised by me. Every effort has been made to enhance the quality of work. However, I owe the sole responsibility of the shortcoming, if any, in the study.

P.Bala Krishna

CONTENT

Chapter 1 Introduction Scope of the Study Objectives of the Study Need for the study Limitations Data collection

Page No.
07 09 09 09 09 10

Chapter 2
13

Review of Literature Compensation Management Types of Compensation Determinants of Compensation System

Evolution of Compensation System

16 19 25 27 31 32 37 38 41

Compensation System in Health Care Unit Importance of Compensation System Compensation Laws & Policies Awards Company Profile & Organization Study

Chapter 3

Chapter 4 Interpretations and Analasys Chapter 5

Findings & Suggessions Conclusions

57 69 71 73

Chapter 6 Bibliography

Questionnaire

Chapter - 1

INTRODUCTION
Human Resource is the most vital resource for any organization. It is responsible for each and every decision taken, each and every work done and each and every result. Employees should be managed properly and motivated by providing best remuneration and compensation as per the industry standards. The lucrative compensation will also serve the need for attracting and retaining the best employees.

Compensation is the remuneration received by an employee in return for his/her contribution to the organization. It is an organized practice that involves balancing the work-employee relation by providing monetary and non-monetary benefits to employees. Compensation is an integral part of human resource management which helps in motivating the employees and improving organizational effectiveness. Components of compensation system. Compensation systems are designed keeping in minds the strategic goals and business objectives. Compensation system is designed on the basis of certain factors after analyzing the job work and responsibilities. Components of a compensation system are as follows:

JOB ANALYSIS: Job analysis is a systematic approach to defining the job role, description, requirements, responsibilities, evaluation, etc. It helps in finding out required level of education, skills, knowledge, training, etc for the job position. It also depicts the job worth i.e. measurable effectiveness of the job and contribution of job to the organization. Thus, it effectively contributes to setting up the compensation package for the job position.

PAY STRUCTURE: Once job analysis has been done organizations need to decide upon the pay structures. Pay structure refers to the process of setting up the pay for a job in an organization. The process deals with internal and external analysis to estimate the compensation package for a job profile. Internal equity, External equity and Individual equity are the most popular pay structures. Job description provides the in depth knowledge about the job profile and its worth. Pay structures are the strong determinant of employees value in the organization. It helps in analyzing the employees role and status in the organization. It provides for fair treatment to all employees. Pay structures also include the estimation of incentives. SALARY SURVEY: Organizations have to bridge the gap between the industry standards and their salary packages. They cannot provide compensation packages that are either less than the industry standards or are very higher then the market rates. For the purpose they undertake the salary survey. The Salary survey is the research done to analyze the industry standards to set up the compensation strategy for the organization. Organizations can either conduct the survey themselves or they can purchase the survey reports from a reputed research organization. These reports constitute the last 2-5 years or more compensation figures for the various positions held by the organizations. The analysis is done on the basis of certain factors defined in the objectives of the research.

SCOPE OF THE STUDY The complex process includes decisions regarding variable pay an benefits. It suggests an exchange relationship between the employee and the organization. It involves design, development, implementation, communication and the evaluation of reward strategy and process of the organization.

OBJECTIVES OF THE STUDY To reward employees past performance fairly, in line with efforts, skills and competencies. To attract and retain competitive high performing employees. To motivate the high performing employees and reinforce desirable employee behavior. To remain competitive in the labor market. To align employees future performance with organizational goals. To communicate the employees their worth to the organization. To provide employee social status.

NEED OF COMPENSATION MANAGEMENT A good compensation package is important to motivate the employees to increase the organizational productivity. Unless compensation is provided no one will come and work for the organization. Thus, compensation helps in running an organization effectively and accomplishing its goals. Salary is just a part of the compensation system, the employees have other psychological and self-actualization needs to fulfill. Thus, compensation serves the purpose. The most competitive compensation will help the organization to attract and sustain the best talent. The compensation package should be as per industry standards.

LIMITATIONS OF THE STUDY The project chosen for analysis is COMPENSATION MANAGEMENT in Biological E Ltd for a period of 45 days. The study only deals with the compensation management in Biological E Ltd.

RESEARCH METHODOLOGY AND DATA ANALYSIS

RESEARCH METHODOLOGY SAMPLING METHOD: Simple random sampling is a technique of drawing the sample in such a way that each unit of the population having an equal and independent of chance.

Sample size: 100 Statistical Tool: Random sampling method Sample Unit: People belonging to all designations

DATA ANALYSIS
The data is analyzed mainly from the questionnaire. Data interpretation is done with the help of statistical tool like Bar chart, Pie diagram etc which are all based on the data which is not only collected from questionnaire but also from companys profile. The process of analyzing the data will begin with first collecting the data, which is obtained, from the questionnaire and then tabulating it. Then the tabulated data is depicted in diagrammatic form that is in the terms of a graph. Then from the graph an interpretation is made.

DATA COLLECTION Primary data: The data collected is from the personal interaction with the authorized members, team leaders in Biological E Ltd.

QUESTIONNAIRE Under this method a well-structured questionnaire is prepared covering all aspects with respect to the related topics. This contains close-ended questions. In the close-ended questions the respondent has to answer the questions within the choice specified. By distributing the questionnaire to the respondent the data is collected.

OBSERVATION METHOD By observing the activities being performed by the organization, the data is collected. Care should be taken that the activity should be observed for one complete work life style.

Secondary data: The guidelines from the MBA department staff and project guide. The broachers and material provided by the Biological E Ltd. Books relating to compensation management by different authors.

Chapter-2

REVIEW OF LITERATURE
COMPENSATION MANAGEMENT:

Managers who focus on developing talent in-house ensure their employees have the tools and resources they need to perform well, receive proper compensation and transition to leadership roles. Pay-for-performance is a fair and equitable compensation management system that encourages loyalty by fairly compensating high performing employees without providing a pro forma raise or bonus to under-performers. Employers retain their highest performers while providing incentives that properly motivate all employees to strive for excellence. By rewarding your employees fairly you engage them, increase morale, inspire loyalty and ultimately achieve better financial results.

Methods of compensation management

Point factor analysis (PFA) is and systemic bureaucratic method for determining a relative score for a job. Jobs can then be banded into grades, and the grades used to determine pay. PFA is a type of Job Evaluation. The main advantage of PFA is that it is systemic and analytical. Jobs are broken down into factors such as knowledge required. A set of closed questions in each factor break down to detail such as level of education. The responses to these questions are given a score, and totaled for each factor. Each factor is given a weight, and this effects the contribution made to the overall total score by that factor. Factors can be weighted according to their significance to the organization, and this allows the pay scheme to be linked to the organsations strategy. A critical factor in job evaluation is that it is the role that is assessed, not the person doing it. Job evaluation can be performed on roles not recruited for yet. This means that the score should be both unrelated to the person doing the job and perceived as fair. PFA is not the only mechanism, as there are systems that carry out more complex calculations on the results of the questionnaire. The Hay System of Compensation is one of the most commonly used systems and it compiles scores using a complex lookup chart to weigh the factor values.

Many modern schemes attempt to take better account of this. When the evaluation is performed methodically and analytically it can provide material factor defence in equal pay claims. A criticism often made against PFA in isolation is that it fails to take account of external factors. Skills in high demand in the market can create a premium as organizations have to compete for the people who have them. Some account of the skills required can be accounted for in the evaluation, but the relative number of people with those skills cannot be accounted for internally and will change over time.

Hay Job Evaluation is a methodology used by many corporate and organizations to map out their job roles in the context of the organizational structure. The general purpose for carrying out job evaluations using this or similar methods is to enable organizations to map all their roles in a manner that delivers the following key benefits Recognizing equivalent levels for the purposes of salary and benefit grading/banding Improved succession planning Creation of more useful and focused job descriptions

Applying the Hay methodology to a role results in two profiles being produced which are called long and short profiles. The long profile provides a view on aspects of the role and a score. The short profile refers to broad groupings of job types that would fit the profile and acts as a check on the long profile. Typically, Hay evaluations are carried out in a series of steps within any organization which chooses to use the method Training for representatives from major operational departments and HR functions in the use of the method. This will include practical exercises where a

mix of people will act as a "job board" and evaluate some trainer-provided job specifications or perhaps some real jobs from their own organization. Revision of all job descriptions across the enterprise under HR guidance. Typically a single standard will be required if it is not already in existence. This will try to capture data in a form that will enable job boards to analyze roles more easily. Job Boards - The sponsor/leader of the initiative will allocate the trained staff into job boards of about 4 people. They will be given reporting lines (i.e. related jobs) and each member will rate these as they see them before attending the board. At the board, the group will debate the final scoring, examine the differences and agree on a short and long profile for each role. It can take a long session to rate jobs, initially but as job boards work together, more, they become more productive. Organization map and banding proposal - Typically the HR function will work with senior management to put together a proposal for banding or grading staff and describing the benefits that will be attracted by each band. Board Review - once the jobs are all rated and the organization map is completed, the company board or equivalent will review the summary, the banding proposals, cost if any, to the company and recommended activities to go live. Assuming these are approved, the overall project manager will then move to implementation.

The Hay Guide Charts (properly the Hay Group Guide Chart-Profile Method) are the central instrument of the proprietary point-factor job evaluation methodology developed by the Hay Group. The Hay Group was founded in 1943 in Philadelphia, PA, by Ned Hay Guide Chart.

COMPENSATION MANAGEMENT:

Managers who focus on developing talent in-house ensure their employees have the tools and resources they need to perform well, receive proper compensation and transition to leadership roles. Pay-for-performance is a fair and equitable compensation management system that encourages loyalty by fairly compensating high performing employees without providing a pro forma raise or bonus to under-performers. Employers retain their highest performers while providing incentives that properly motivate all employees to strive for excellence. By rewarding your employees fairly you engage them, increase morale, inspire loyalty and ultimately achieve better financial results.

Compensation Structure
The compensation package includes the following components. Apart from the regular components, medical practitioners are also provided with the special benefits mentioned below.

ENTRY LEVEL COMPENSATION

Indian healthcare industry can be categorized in public and private sectors. The public enterprises offer job security and the private institutes provides for lucrative packages. The industry is creating opportunities in new areas to facilitate more health care services such as health and fitness, wellness, rehabilitation, home healthcare, nutrition. It is a challenge to the healthcare industry to restructure its compensation packages to attract the young talent. Young talent opts for performance based pay and incentives whereas old generation is still demanding the heavy benefits. Organizations need to formulate a balanced strategy to improve the organizational productivity and provide the most competitive pay-packages. Given below are the various openings the industry has for fresh medical professionals:

MANAGEMENT COMPENSATION PACKAGES

Organizations understand that only compensation package will not help them retain their talented workforce but they need to provide excellent working atmosphere, growth opportunity, and space for experimentation. The individual satisfaction level must also be maintained. They should take measures to motivate employees. Like other industries in healthcare industry too, the non-technical staff such as marketing team are receiving lucrative packages.

Top Management Compensation Structure

The organizations are offering lucrative compensation packages to their senior management. They try to balance the packages provided to the technical professionals and non-technical professionals by offering annual bonuses and variable pay plans. Companies are becoming competitive when it comes to luring top executives with a mix of high basic salary, incentives, Employee Stock Ownership Plan and deferred pay. They are also looking at performance-based salaries, with variable pay as a percentage of salaries on the rise.

Figure: Compensation Package Offered to Senior Management in Indian Healthcare Industry

Significant increase has been in salary packages in the industry. The average increase in salary in the sector has been reported as 12% in the year 2006. Organizations have offered car and accommodation benefits to their senior and middle management employees. Given below is the average increase in the salary in the industry at various segments:

Figure: Average salary increase in the Indian Healthcare Sector The compensation in the industry also depends on the specialized area. Compensation is decided with respect to the individuals contribution to the organization.

Types of Compensation

Compensation provided to employees can direct in the form of monetary benefits and/or indirect in the form of non-monetary benefits known as perks, time off, etc. Compensation does not include only salary but it is the sum total of all rewards and allowances provided to the employees in return for their services. If the compensation offered is effectively managed, it contributes to high organizational productivity.

Direct Compensation Indirect Compensation

Direct compensation Direct compensation refers to monetary benefits offered and provided to employees in return of the services they provide to the organization. The monetary benefits include basic salary, house rent allowance, conveyance, leave travel allowance, medical reimbursements, special allowances, bonus, Pf/Gratuity, etc. They are given at a regular interval at a definite time.

Basic salary Salary is the amount received by the employee in lieu of the work done by him/her for a certain period say a day, a week, a month, etc. It is the money an employee receives from his/her employer by rendering his/her services. House Rent Allowance Organizations either provide accommodations to its employees who are from different state or country or they provide house rent allowances to its employees. This is done to provide them social security and motivate them to work. Conveyance Organizations provide for cab facilities to their employees. Few organizations also

provide vehicles and petrol allowances to their employees to motivate them.

Leave Travel Allowance These allowances are provided to retain the best talent in the organization. The employees are given allowances to visit any place they wish with their families. The allowances are scaled as per the position of employee in the organization.

Medical Reimbursement Organizations also look after the health conditions of their employees. The employees are provided with medi-claims for them and their family members. These medi-claims include health-insurances and treatment bills reimbursements.

Bonus Bonus is paid to the employees during festive seasons to motivate them and provide them the social security. The bonus amount usually amounts to one months salary of the employee. Special Allowance Special allowance such as overtime, mobile allowances, meals, commissions, travel expenses, reduced interest loans; insurance, club memberships, etc are provided to employees to provide them social security and motivate them which improve the organizational productivity. Indirect Compensation Indirect compensation refers to non-monetary benefits offered and provided to employees in lieu of the services provided by them to the organization. They include Leave Policy, Overtime Policy, Car policy, Hospitalization, Insurance, Leave travel Assistance Limits, Retirement Benefits, Holiday Homes. Leave Policy It is the right of employee to get adequate number of leave while working with the organization. The organizations provide for paid leaves such as, casual leaves, medical leaves (sick leave), and maternity leaves, statutory pay, etc. Overtime Policy Employees should be provided with the adequate allowances and facilities during their overtime, if they happened to do so, such as transport facilities, overtime pay, etc.

Hospitalization The employees should be provided allowances to get their regular check-ups, say at an interval of one year. Even their dependents should be eligible for the medi-claims that provide them emotional and social security.

Insurance Organizations also provide for accidental insurance and life insurance for employees. This gives them the emotional security and they feel themselves valued in the organization. Leave Travel The employees are provided with leaves and travel allowances to go for holiday with their families. Some organizations arrange for a tour for the employees of the organization. This is usually done to make the employees stress free.

Retirement Benefits Organizations provide for pension plans and other benefits for their employees which benefits them after they retire from the organization at the prescribed age. Holiday Homes Organizations provide for holiday homes and guest house for their employees at different locations. These holiday homes are usually located in hill station and other most wanted holiday spots. The organizations make sure that the employees do not face any kind of difficulties during their stay in the guest house. Flexible Timings Organizations provide for flexible timings to the employees who cannot come to work during normal shifts due to their personal problems and valid reasons.

DETERMINANTS OF COMPENSATION SYSTEM

INTERNAL FACTORS

EXTERNAL FACTORS

Compensation Strategy of organization Worth of job Employees relative worth Employers ability to pay
Pay levels

Conditions of the labor market Area wage rates Cost of living Collective bargaining Legal requirements

INTERNAL DETERMINANTS Employers Compensation Strategy Setting organization compensation policy to lead, lag, or match competitors pay.

 Worth of a Job Establishing the internal wage relationship among jobs and skill levels. Employees Relative Worth Rewarding individual employee performance Employers Ability-to-Pay Having the resources and profits to pay employees. EXTERNAL DETERMINANTS Labor Market Conditions Availability and quality of potential employees is affected by economic conditions, Government regulations and policies, and the presence of unions. Area Wage Rates A firms formal wage structure of rates is influenced by those being paid by other area Employers for comparable jobs. Cost of Living Local housing and environmental conditions can cause wide variations in the cost of living for employees. Inflation can require that compensation rates be adjusted upward periodically to help employees maintain their purchasing power. Collective Bargaining The term extends to all negotiations that take place between an employer, group of employers or one or more employers organizations on the one hand, and one or more workers organizations on the other to (a) Determine the working conditions and terms of employment and / or (b) Regulate relations between employer and employee/workers and / or

(c) Regulate relations between employer organization or employee/workers organization

EVOLUTION OF COMPENSATION MANAGEMENT

Todays compensation systems have come from a long way. With the changing organizational structures workers need and compensation systems have also been changing. From the bureaucratic organizations to the participate organizations, employees have started asking for their rights and appropriate compensations. The higher education standards and higher skills required for the jobs have made the organizations provide competitive compensations to their employees. Compensation strategy is derived from the business strategy. The business goals and objectives are aligned with the HR strategies. Then the compensation committee or the concerned authority formulates the compensation strategy. It depends on both internal and external factors as well as the life cycle of an organization.

Evolution of Strategic Compensation

Traditional Compensation Systems In the traditional organizational structures, employees were expected to work hard and obey the bosses orders. In return they were provided with job security, salary increments

and promotions annually. The salary was determined on the basis of the job work and the years of experience the employee is holding. Some of the organizations provided for retirement benefits such as, pension plans, for the employees. It was assumed that humans work for money, there was no space for other psychological and social needs of workers. I other words, traditional methods of compensation involve set pay levels (wage or salary) with regular increases. Increases can be given for a variety of reasons, but are typically given for promotions, merit increases, or cost of living increases. The Hay Group points out that there is less distinction today between merit increases and cost of living increases: "Because of the low levels (3 to 4 percent) of salary budget funding, most merit raises are perceived as little more than cost of living increases. Employees have come to expect them." This "base pay" system is one that most people are familiar with. Often, it includes a set salary or wage, a set schedule for merit increases, and a set benefits package.

BENEFITS
Benefits are an important part of an employee's total compensation package. Benefits packages became popular after World War II, when wage controls made it more difficult to give competitive salaries. Benefits were added to monetary compensation to attract, retain, and motivate employees, and they still perform that function today. They are not cash rewards, but they do have monetary value (for example, spiraling health care costs make health benefits particularly essential to today's families). Many of these benefits are nontaxable to the employee and deductible by the employer. Many benefits are not required by law, but are nonetheless common in total compensation packages. These include health insurance, accidental death and dismemberment insurance, some form of retirement plan (including profit-sharing, stock option programs, 401(k) and employee stock ownership plans), vacation and holiday pay, and sick leave. Companies may also offer various services, such as day care, to employees, either free or at a reduced cost. It is also common to provide employees with

discounted services or products offered by the company itself. In addition, there are also certain benefits that are required by either state or federal law. Federal law, for example, requires the employer to pay into Social Security, and unemployment insurance is mandated under OASDHI. State laws govern worker's compensation.

CHANGES IN COMPENSATION SYSTEMS

With the behavioral science theories and evolution of labour and trade unions, employees started asking for their rights. Maslow brought in the need hierarchy for the rights of the employees. He stated that employees do not work only for money but there are other needs too which they want to satisfy from there job, i.e. social needs, psychological needs, safety needs, self-actualization, etc. Now the employees were being treated as human resource. As businesses change their focus, their approach to compensation must change as well. Traditional compensation methods may hold a company back from adequately rewarding its best workers. When compensation is tied to a base salary and a position, there is little flexibility in the reward system. Some new compensation systems, on the other hand, focus on reward for skills and performance, with the work force sharing in company profit or loss. One core belief of new compensation policies is that as employees become employee owners, they are likely to work harder to ensure the success of the company. Indeed, programs that promote employee ownershipand thus employee responsibility and emotional investmentare becoming increasingly popular. Examples of these types of programs include gain sharing, in which employees earn bonuses by finding ways to save the company money; pay for knowledge, in which compensation is based on job knowledge and skill rather than on position (and in which employees can increase base pay by learning a variety of jobs); and incentive plans such as employee stock options plans (ESOPs). PAY FOR PERFORMANCE

Probably the most popular of the newer concepts in compensation is the easiest to understandcompensation based on performance. These programs, sometimes referred to as variable pay programs, generally offer compensation incentives based on employee performance or on the performance of a team. Pay for performance rewards high performance and does not reward mediocre or low performance, and is the definition of the "merit" system. In a true merit based system, there are a few conditions which must be satisfied for it to be meaningful:

Employees must have control over their performance. If employees are overly dependent on the actions and output of other employees or processes, they may have little control over their own performance.

Differences in performance must mean something to the business. If there is little difference between a high performer and a mediocre one, merit pay won't work. Performance must be measured regularly and reliably. A clear system of performance appraisal, with defined criteria that are understood by the employee and regularly scheduled meetings must be in place.

ADMINISTERING COMPENSATION PROGRAMS

Compensation programs and policies must be communicated clearly and thoroughly to employees. Employees naturally want to have a clear understanding of what they can reasonably expect in terms of compensation (both in terms of monetary compensation and benefits) and performance appraisal. To ensure that this takes place, consultants urge business owners to detail all aspects of their compensation programs in writing. Taking this step not only helps reassure employees, but also provides the owner with additional legal protection from unfair labor practices accusations. Their performance was being measured and appraised based on the organizational and individual performance. Competition among employees existed. Employees were

expected to work hard to have the job security. The compensation system was designed on the basis of job work and related proficiency of the employee.

Maslows Need Hierarchy

Todays Modern Compensation Systems Today the compensation systems are designed aligned to the business goals and strategies. The employees are expected to work and take their own decisions. Authority is being delegated. Employees feel secured and valued in the organization. Organizations offer monetary and non-monetary benefits to attract and retain the best talents in the competitive environment. Some of the benefits are special allowances like mobile, companys vehicle; House rent allowances; statutory leaves, etc.

COMPENSATION SYSTEM IN HEALTH CARE UNIT

Salary package is the core aspect for attracting and retaining employees. The immense growth in the sector has caused the compensation packages in the industry increase at a rapid pace. The compensation packages in the industry are reaching the same roof as of IT sector in the country. The industry is booming and this has led the medical institutes to offer lucrative packages to attract and retain skilled medical practitioners. In recent study it was revealed that medical tourism is increasing in India. It is expected that the Indian healthcare industry will grow by more than 40% in the next 5 years. This has caused more and more companies are entering the sector which is demanding more and more professionals. Hence, the organizations offer most competitive packages to acquire the best talent around. It has been found that that there are many MNCs in the Indian healthcare industry who want to put the management on a global scale.

IMPORTANCE OF COMPENSATION SYSTEM

Compensation and Reward system plays vital role in a business organization. Since, among four Ms, i.e. Men, Material, Machine and Money, Men has been most important factor, it is impossible to imagine a business process without Men. Every factor contributes to the process of production/business. It expects return from the business process such as rent is the return expected by the landlord, capitalist expects interest and organizer i.e. entrepreneur expects profits. Similarly the labour expects wages from the process. Labour plays vital role in bringing about the process of production/business in motion. The other factors being human, has expectations, emotions, ambitions and egos.

Labour therefore expects to have fair share in the business/production process. Therefore a fair compensation system is a must for every business organization. The fair compensation system will help in the following: An ideal compensation system will have positive impact on the efficiency and results produced by employees. It will encourage the employees to perform better and achieve the standards fixed. It will enhance the process of job evaluation. It will also help in setting up an ideal job evaluation and the set standards would be more realistic and achievable. Such a system should be well defined and uniform. It will be apply to all the levels of the organization as a general system. The system should be simple and flexible so that every employee would be able to compute his own compensation receivable. It should be easy to implement, should not result in exploitation of workers. It will raise the morale, efficiency and cooperation among the workers. It, being just and fair would provide satisfaction to the workers. Such system would help management in complying with the various labor acts. Such system should also solve disputes between the employee union and management. The system should follow the management principle of equal pay. It should motivate and encouragement those who perform better and should provide opportunities for those who wish to excel. Sound Compensation/Reward System brings peace in the relationship of employer and employees. It aims at creating a healthy competition among them and encourages employees to work hard and efficiently. The system provides growth and advancement opportunities to the deserving employees.

The perfect compensation system provides platform for happy and satisfied workforce. This minimizes the labour turnover. The organization enjoys the stability.

The organization is able to retain the best talent by providing them adequate compensation thereby stopping them from switching over to another job. The business organization can think of expansion and growth if it has the support of skillful, talented and happy workforce. The sound compensation system is hallmark of organizations success and prosperity. The success and stability of organization is measured with paypackage it provides to its employees.

Compensation & Benefits (abbreviated C&B) is a sub-discipline of HumanResources, focused on employee compensation and benefits policy making. It is also known in the UK as Total Reward and as Remuneration in Australia and New Zealand.

The Basic Components of Employee Compensation & Benefits

Employee compensation and benefits are basically divided into four categories: 1. Guaranteed Pay monetary (cash) paid by an employer to an employee based on employee/employer relations. The most common form of guaranteed pay is the base salary. 2. Variable Pay monetary (cash) reward paid by an employer to an employee that is contingent on discretion, performance or results achieved. The most common forms are bonuses and sales incentives. 3. Benefits programs an employer uses to supplement employees compensation, such as paid time-off, medical insurance, company car, and more. 4. Equity Based Compensation a plan using the employers share as compensation. The most common examples are stock options.

Guaranteed Pay
Guaranteed pay is a monetary (cash) reward. The basic element of the guaranteed pay is the base salary, paid based on an hourly, daily, weekly, bi-weekly or a monthly rate. The base salary is typically used by employees for ongoing consumption. Many countries dictate the minimum base salary defining a minimum wage. Individual skills and level of experience of employees leave room for differentiation of income-levels within the job-based pay structure. In addition to base salary, there are other pay elements which are paid based solely on employee/employer relations, such as 13th salary, seniority allowance, and more.

Variable Pay
Variable pay is a monetary (cash) reward that is contingent on discretion, performance or results achieved. There are different types of variable pay plans, such as bonus schemes, sales incentives (commission), overtime pay, and more. An example where this type of compensation plan is prevalent is the real estate industry and real estate agents. A common variable pay plan might be the sales person receives 50% of every dollar they bring in up to a level of revenue at which they then bump up to 85% for every dollar they bring in going forward. Typically, this type of plan is based on an annual period of time requiring a "resetting" each year back to the starting point of 50%. Sometimes this type of plan is administered so that the sales person never resets and never falls down to a lower level.

Benefits
There is a wide variety of employee benefits, such as paid time-off, insurances (life insurance, medical/dental insurance, company car, and more. and work disability insurance), pension plan,

A benefit plan is designed to address a specific need and is often provided not in the form of cash. Many countries dictate different minimum benefits, such as minimum paid time-off, employers pension contribution, sick pay, and more.

Equity Based Compensation

Equity based compensation is an employer compensation plan using the employers shares as employee compensation. The most common form is stock options, yet employers use additional vehicles such as Restricted Stock, Restricted Stock Units (RSU), Employee Stock Purchase Plan (ESPP), and Stock Appreciation Rights (SAR). The classic objectives of equity based compensation plans are retention, attraction of new hires and aligning employees and shareholders interests.

C&B Organizational Place

In most companies, compensation & benefits (C&B) is a sub-function of the HumanResources (HR) function. HR organizations in big companies are typically divided into three: HR Business Partners (HRBPs), HR Centers of Excellence, and HR Shared Services. C&B is an HR center of excellence, like Staffing and Organizational Development (OD).

C&B Main Influencers

Employee compensation and benefits main influencers can be divided into two: internal (company) and external influencers. The most important internal influencers are the business objectives, labor unions, internal equity (the idea of compensating employees in similar jobs and similar performance in a similar way), organizational culture and organizational structure.

The most important external influencers are the state of the economy, inflation, unemployment rate, the relevant labor market, law, tax law and the relevant industry habits and trends. Legal framework for payment of salary in INDIA Payment of wages Act, 1936 The minimum wages Act, 1948 The payment of Bonus Act, 1965 Equal remuneration Act, 1976

Compensation: Ethics and Accountability

Incentive payments are excessive compared with return to stockholders. Time periods for judging and rewarding performance are too short. Subjective in nature Emphasis is placed upon equaling or exceeding executive salary survey averages. Benefits do not relate closely to individual performance.

COMPENSATION LAWS
There are many federal, state, and local employment and tax laws that impact compensation. These laws define certain aspects of pay, influence how much pay a person may receive, and shape general benefits plans. The Fair Labor Standards Act (FLSA) is probably the most important piece of compensation legislation. Small business owners should be thoroughly familiar with it. This act contains five major compensation laws governing minimum wage, overtime pay, equal pay, recordkeeping requirement, and child labor, and it has been amended on several occasions over the years. Most of the regulations set out in the FLSA impact nonexempt employees, but this is not true across the board.

The Equal Pay Act of 1963 is an amendment to FLSA, which prohibits differences in compensation based on sex for men and women in the same workplace whose jobs are similar. It does not prohibit seniority systems, merit systems, or systems that pay for performance, and it does not consider exempt or non-exempt status. In addition, the United States government has passed several other laws that have had an impact, in one way or another, on compensation issues. These include the Consumer Credit Protection Act of 1968 , which deals with wage garnishments; the Employee Retirement Income Security Act of 1974 (ERISA ), which regulates pension programs; the Old Age, Survivors, Disability and Health Insurance Program (OASDHI), which forms the basis for most benefits programs; and implementation of unemployment insurance, equal employment, worker's comp, Social Security, Medicare, and Medicaid programs and laws. COMPENSATION POLICY ISSUE Pay for performance Pay for seniority Salary increases and promotions Overtime and shift pay Probationary pay Paid and unpaid leaves Paid holidays Salary compression (A salary inequity problem, generally caused by inflation, resulting in longer-term employees in a position earning less than workers entering the firm today). Geographic costs of living differences. AWARDS Often used to recognize productivity gains, special contributions or achievements, and service to the organization. Employees feel appreciated when employers tie awards to performance and deliver awards in a timely, sincere and specific way. Rooms of offices are named after the employees in NIIT

 Recognition awards Recognition has a positive impact on performance, either alone or in conjunction with financial rewards. Combining financial rewards with nonfinancial ones produced performance improvement in service firms almost twice the effect of using each reward alone. Day-to-day recognition from supervisors, peers, and team members is important. Best performer of the month awards in Blue Dart, ALACTEL,XANSA etc.,

Service awards Award for the length of service and exactly not on performance IBM: thanks award IDEA: appreciation card

Chapter-3

COMPANY PROFILE AND ORGANIZATION STUDY

1. COMPANY 2. NATURE 3. YEAR OF INCORPORATION 4. PLACES OF REGISTRATION 5. LOCATION : : : : : BIOLOGICAL E LIMITED PRIVATE LIMITED 1953 ANDHRA PRADESH BIOLOGICAL E LIMITED

18/1&3, AZAMABAD, HYDERABAD-500020. 6. AUTHORISED DISTRIBUTORS: 15000

COMPANY PROFILE
Biological E Limited was established over 50 years ago. It is the first private sector biological products company in India and the first pharmaceuticals company in South India. BE is also the pioneer in preventive medicine.

Originally incorporated as Biological Products Private Limited in 1953, and launched by Dr. D.V.K. Raju, Biological E today, is a leader in Vaccinology in India and a significant player in the world vaccine market. We are further expanding and enhancing the facilities and product lines for vaccines through the establishment of a new plant and R&D centre in Andhra Pradesh. Early on, Biological E Limited partnered with Evans Medical of UK to develop pharmaceutical formulations. Later we teamed with Glaxo, India to focus on building the pharmaceutical business in India. We have also collaborated with Pasteur Meriux Connaught of France and Solvay & Cie of Belgium. Every tie-up we entered into has sought to strengthen and advance our over all strategy of being innovative, expanding and developing product lines and building infrastructure with an eye to the future. Biological E Limited supplies most of the essential and life saving drugs to Central and State Government Hospitals, Public Sector Undertakings, the Indian Armed Forces and the domestic retail market. Our International division provides global-access to high quality innovative products and caters to the health and well being of people worldwide. Biological E Limited is now a serious participant in the exciting new face of medical science - Gene Therapy. With the dynamic Dr. Vijay Kumar Datla, Chairman & Managing Director as its head and inspiration, BE is offering hope to people who can't be helped by standard treatments. From being one of the first endeavors to promoters of the indigenous pharmaceutical industry to a formidable presence in the preventive spheres of vaccines; producers of bulk drugs to cutting edge genetic and cell-based technologies to treat disease, Biological E Limited has always displayed the vigor, energy to surmount ever higher peaks and the vision to constantly expand it's horizons Biological E Limited has a long and richly textured history but the future promises to be even more exciting and successful.

TIME LINE HISTORY

Biological E Limited has a tradition of concern for people and healthcare providers and a dedication to develop the highest quality pharmaceutical products. Play the timeline graphics below to trace our long history as a caring company.

Established in 1953, Biological E Limited (BE) is a leading, world-class Pharmaceutical and Biologics company with an impressive range of healthcare products. We are a company driven by knowledge a huge pool of talent that gives us the competitive advantage to make an impact in the global markets. Our unequalled values and a quality customer-centric policy form the basis of our investments in systems and infrastructure. BE is the first private sector biological products company and a pioneer in the vaccine industry in India. We take pride in our historical and on-going partnership with the Government of India in the National Immunization Program of the country. This enables us to provide affordable access to critical vaccines for millions of children in India. In addition to our efforts in Biologics, BE has built expertise in the areas of novel delivery systems, strategic bulk actives and formulations. The BE business model has three core dimensions comprising of Biologics, Pharmaceuticals and Bulk Actives. Through these strategic divisions, the company is able to address the needs of the domestic markets as well as international markets in Asia, the CIS countries, the USA, and Latin America. From its maiden products in classical biologics such as Heparin, BE continues to innovate and develop new age genetically engineered biologics. BE produces and markets a range of pediatric and adult vaccines and has a significant market share in the Indian vaccine market. In just a span of a decade, the company has delivered over 1.5 billion doses of vaccine towards the Immunization needs in India. BE brings an enormous breadth of biologics ranging from bacterial vaccines toxoids to polysaccharide conjugates and cell-culture viral vaccines to recombinant proteins. Our current Research focus comprises of developing low molecular weight heparins (LMWH), conjugate vaccines and a portfolio of flavivirus vaccines for unmet needs. In 2006, BE commissioned a state-of-the-art GMP manufacturing facility at SP Biotech Park in Andhra Pradesh to produce vaccines and biologics meeting international standards. This facility will enable BE to enhance capacities for its existing vaccines, create large-scale manufacturing capacities for new vaccines that are in the R&D pipeline and most importantly, create access for its products across the world especially in regulated markets. Be it world-class manufacturing, sales or distribution, BE, through its investments, is in a unique position today to meet the opportunities for global demands in biologics as well as in pharmaceuticals.

MANAGEMENT PHILOSOPHY CULTURE

Biological E Limited has a tradition of concern for people and healthcare providers, with a dedication to develop good pharmaceutical products. Biological E Limited regards "practitioners, patients and their families" as the most important participants in the healthcare process and expects all its employees to consider and be responsive to - "the practitioner and patient's perspective" in their effort to improve human healthcare through proactive medication Biological E Limited is committed to improving the quality of human life by enabling people to do more, feel better and live longer.

MANAGEMENT POSITION
Biological E Limited's triumphs have been based on the principled and equitable management of its human resources. Talent and creativity of people is the one differentiator that separates the entities that will succeed from the companies that will perish. Attracting talent, retaining talent and building talent are Biological E Limited management's primary focus. At Biological E Limited, we encourage autonomy and give people the freedom to develop and contribute their best to the organization. The entire management team is like a family - coherent and compact - always looking to support and encourage one another. Biological E Limited strongly believes that the success of a business depends on "peopleembodied" knowledge. This is especially true in the knowledge-based industries, like Pharmaceuticals and Biotech. Dr. Vijay Kumar Datla, Chairman and Managing Director, the man behind Management's thrust, strongly believes in individual learning and development at Biological E Limited. Biological E Limited's management style influences the work environment and the results are there for all to see.

BIOLOGICS

Biological E Limited was the first Indian private company to enter into the production and marketing of vaccines in the country. With its specific focus on paediatric and adult vaccines, Biological E Limited has built up a very significant share of the Indian vaccine market, especially in the paediatric range. Bett from BE is the market leader in Tetanus Texoid segment in India Biological E Limited started up a state-of-the-art Technology project at Biotech Park Phase II - Genome Valley - in Andhra Pradesh to produce a new generation of vaccines in order to reach out to international markets. Through the enhancement of its manufacturing and development capabilities BE is focused on becoming a major world player in the vaccines business Biological E Limiteds dedicated manufacturing facilities have been awarded with the WHO GMP certification. The new facilities at Biotech Park Phase II, Andhra Pradesh are aimed at acquiring WHO prequalification for all the products.

PHARMA
From 1977 Biological E Limited has focused on building its pharmaceutical business in India. Our core competencies are development, manufacturing and marketing of pharmaceuticals. Biological E Limited is the 57th ORG ranking company in India in terms of its prescription market share We have dedicated manufacturing facilities for Solid Dosage Forms, Liquid Orals and Syrups, Parenterals and Active Pharmaceutical Ingredients and continue to invest in world-class facilities that will be in accordance with US FDA and EMEA standards. Biological E Limited has significant capabilities in pharmaceutical product development. We are looking at partnering with innovators and academic institutions as well as licensing from other companies. Our strategy is to develop and launch innovative pharmaceuticals through a collaborative model. In the domestic market, we have sales offices at 23 locations and 25 depots. We cover around 1, 00,000 doctors allover India and our products are sold by around 15,000 stockiest in India. These facilitate the marketing efforts of our team throughout the country. Biological E Limited is also expanding sales and marketing channels internationally. Currently, we export to Japan, Korea, Taiwan, Indonesia, Malaysia and the CIS countries.

PUBLIC MARKET

As the first private sector manufacturer of vaccines and pharmaceutical products in India, Biological E Limited has built up a countrywide distribution network of clients. We cover 72,000 doctors all over India! However, the Government of India, all institutions allied to it, semi-government organizations including Private and Public Institutions are Biological E Limited's biggest clients. The Government of India as a single entity stands out as our largest customer. This is in keeping with its social objectives of providing affordable healthcare and medicines to the masses. Among the most sought after products are Anti Snake Venom, Anti-Tetanus Serum, Tetanus Toxoid, DPT, DT, Heparin and the Coscopin Range. We give below some of the Institutions we service: Director of Health Services (DHS): Each State Government runs health schemes under the control or guidance of the Director of Health Services. Government Medical Stores Depots (GMSD): Located at Mumbai, Calcutta, Guwahati, Chennai, Hyderabad, Delhi and Karnal, they cater to the requirements of many of the Government/Semi Government Institutions like Medical Colleges, Civil Hospitals, CGHS Supplies and Public Sector Units. Railways: The Railways is the single largest Government undertaking employing over 50, 00,000 people with well equipped Hospitals. Employee State Insurance Corporation (ESIC), Delhi: All private industry workers earning a salary below Rs.7500/ - per month are covered by the ESI. Director General of Armed Forces Medical Stores (D.G.A.F.M.S.): They procure medical supplies for all the Armed Forces Medical Stores Depots. Municipal Corporation Hospitals/Dispensaries: These are located in every town and city in the country. We also cater to the needs of the following institutions: Police Line Dispensaries and Dispensaries attached to various jails University Health Canters attached to each University State Road Transport Corporations Electricity Boards in every state Bharat Heavy Electricals Ltd. (BHEL) whose units are located at Bhopal, Jhansi, Hardwar, Tiruchirapalli, Bangalore and Hyderabad

The Steel Authority of India Ltd with units at Bhilai, Bokaro, Rourkela, Salem, Ranchi, Jamshedpur (Telco), Durgapur and Visakhapatnam Oil and Natural Gas Commission (ONGC) Medical units Hindustan Aeronautics Limited Currency Note Pres Coal Fields (CCL, WCL, SECL, NCL)

BIOLOGICS
Biological E. Limited products have been used to protect millions of Indians, through immunization, ever since its inception as a pioneer and the first private sector biological products company in the country. Today Biological E Limited continues to enjoy the leadership position in Vaccinology and has a significant market share in the Indian vaccine market, especially in the paediatric range. Our unique Biological Products namely Beparine and Neo-Hepatex have proved to be blockbuster molecules for the Company. Biological E Limited also produces paediatric vaccines like DPT, TT and ATS and has growth plans to expand into new generation vaccines by focusing on combo vaccines. In the last decade alone, Biological E Limited has supplied over 120 crore doses (1.2 billion) of Vaccines including supplies to the Government of India. Literally every child in India at one time or the other has been immunized by Biological E Limited. The focus of our recent expansion is on vaccines. We expect significant growth and are expanding the product range, market access, manufacturing facilities and infrastructure through investments, product development and marketing agreements. We have started a state-of-the-art Technology project at Biotech Park Phase II, Andhra Pradesh, with strict compliance with WHO and US-FDA GMP guidelines to produce new generation vaccines to reach out to international markets.

PHARMA
When Biological E Limited was incorporated as Biological Products Private Limited in 1953, it became the pioneer in the manufacturing of Heparin in India. Over the course of nearly fifty years, Biological E Limited has expanded and developed its product line to cover a whole range of pharmaceutical formulations in various segments including asthma, cough management and digestive enzymes, nutraceuticals, anti-infectives, anticoagulants and analgesics & antipyretic. Biological E

Limited offers a wide range of value added products including a number of ORG top 300 brands of Indian Pharmaceutical Industry. Our high quality, value added products are affordable. Biological E Limited is equipped with the most modern facilities for manufacturing and regularly introduces the latest products in different therapeutic categories. Biological E Limited is one of the most respected and top pharmaceutical companies of India. Biological E Limited recognizes that strict quality control, adherence to international standards; safety and purity of product are critical to it's business as it affects human life. Our commitment to these standards and practices has been rewarded by the WHO (Geneva) GMP certification.

MANUFACTURING
Biological E. Limited has several firsts to its credit. It was the first private sector biological products company in India; the first pharmaceutical company to manufacture anti-TB drugs in India and the first private sector vaccine manufacturer in the country. However, Biological E Limited's standing and reputation lie not in merely being first but in its long standing and firm commitment to maintaining the highest quality standards through constant innovation, partnerships with reputed institutes and modernization of its manufacturing facilities.

Biological E Limited is investing approximately US $ 50 Million towards the development and expansion of infrastructure. State-of-the-art equipment is being installed in all locations that will meet the US FDA and European MEA standards in manufacturing, quality control and pre-clinical activities. As per the regulatory requirements we have specialized suites for different manufacturing activities. Dedicated laboratories have also been provided to carry out testing of the quality control setup. Several projects are underway to strengthen and expand Biological E Limited's drive to internationalize its business. One of these is the compact and well-maintained production facility to manufacture APIs in Pattancheru, which has ample scope for future expansion.

Another project underway is the modern Biotech facility, with an investment of Rs. 100 crores, in the Genome Valley, Andhra Pradesh. We have taken up this state-of-the-art Technology project to produce a new generation of vaccines, focused on reaching out to international markets. This project complies strictly with the WHO and US FDA Good Manufacturing Practices guidelines.

SALES AND DISTRIBUTION

STRATEGIES: Sales and Distribution is the backbone for any business. The distribution department plays a vital role in the success of the company. Sales and distribution strategies are essential for taking a new product beyond its introduction phase, increasing market share and maximizing potential. BE's committed and hard working Distribution Department supports the Marketing team by ensuring the timely availability of finished goods in the market. As we are leaders in the Vaccine Market, the Distribution Department makes that extra effort in specially packing and forwarding goods to the highest standards. Sales & Distribution operates as an extended arm of the Finance department and coordinates various services in support of the Marketing Department. The Marketing Department in turn ensures the redistribution of finished goods to end users through Authorized Stockiest spread across the nation, getting the most out of the distribution. Marketing Services plays a key role in The appointment of CFAs and Stockiest

 Timely settlement of customer claims Optimum Customer satisfaction Attending to customer's queries

NETWORKS: The department has four Zonal Representatives with the objective of
providing efficient services to internal and external customers and the CFA's. These representatives act as Internal Auditors, visiting all the CFA's periodically. This has led to improved CFA performance. The company operates with 25 carrying and forwarding agents Approximately 15,000 authorized Distributors across the country.

QUALITY
OUR QUALITY POLICIES are focused on the World Health Organization as well as the Drug and Cosmetics Act 1940, India guidelines, laws and regulations governing the manufacture of Pharmaceutical products, Biological products, Herbal products and Active Pharmaceutical Ingredients as well as pharmaceutical requirements to achieve customers deligh t. OUR QUALITY MANAGEMENT is mandated and supported by executive management and although coordinates by the Quality Management Department, it is monitored by departmental self-audits, internal facility audits and Quality Assurance compliance programs. It is further enforced by regulatory agency inspections/investigations. OUR QUALITY STANDARDS are achieved through Quality principles and relevant Standard Operational Procedures that ensure each product meets the requirements for safety, identity, potency, strength, quality, purity, uniformity, reliability and stability. These Quality principles in conjunction with our internal

procedures are used in the planning, design and construction of facilities and validation of processes, products, test methods and systems. Research and Development, Engineering, Maintenance, Materials Management, Production, Quality Assurance and Quality Control are always oriented with true Quality principles. OUR QUALITY CONTROL: laboratories are equipped with routinely calibrated instruments that carry out chemical, biological and microbiological testing. These laboratories separated from the production areas are independent. Our controls are designed to ensure that raw materials, package components, in-process materials, labeling, finished products conform to appropriate standards of safety, identity, strength, quality, purity, uniformity, reliability and stability. Biological E Limited attaches high importance to maintaining a strict quality control, at every stage of its processes, and over products and management practices across all its facilities and throughout the organization. The safety of our products is checked, through extensive testing, sampling and validation procedures, so as to be consistent with the final product specifications.

DISCOVERY
Drug discovery is the process by which drugs are discovered, designed and then developed. Despite advances in technology and understanding of biological systems, drug discovery is still a long process with low rate of new therapeutic discovery. Biological E Limited has always been conscious of the need to continuously discover and develop new products. This understanding has seen Biological E Limited enter into Partnerships with highly reputed research institutions across the world in its efforts to develop and bring out remedies to ailments. We are constantly in the process of developing and launching pharmaceutical products through this collaborative model. Biological E Limited is building partnerships with various companies giving it access to innovative products. Biological E Limited's activities are focused to develop products that allow it's stakeholders to improve their health and enhance their quality of life.

RESEARCH AND DEVELOPMENT

Biological E Limited has a dedicated development facility having a large pool of experienced scientists who are committed to development of various vaccines and recombinant proteins. Our R & D scientists are engaged in process development, process

improvement, formulation and analytical development. Our product development pipeline includes various bacterial polysaccharide and conjugate vaccines, viral vaccines and recombinant protein therapeutics. This facility is recognized by Department of Scientific and Industrial Research, Government of India.

CILINICAL RESEARCH
Biological E Limited's Clinical research is that part of the continuum of health research which is conducted in human beings. This discipline combines discoveries from the basic science laboratory with the observations and insights of clinicians. It then delineates the mechanisms of human health and disease, develops potential preventive, diagnostic and therapeutic measures and finally evaluates their effectiveness for improving health. It also focuses on making rigorous comparisons among current diagnostic, therapeutic and preventive approaches and developing new ones, to determine which are most effective and safe. Clinical research merges with the closely related fields of health systems and population health research. Biological E Limited believes that the maximal benefits to the nation's health and its economy will be achieved by supporting a continuum from basic to clinical to health services to population health research. Globally clinical research is mainly focused on 1. Patient-oriented research - Research conducted with human subjects (or on material of human origin such as tissues, specimens and cognitive phenomena) for which an investigator (or colleague) directly interacts with human subjects. This area of research includes: Mechanisms of human disease Therapeutic interventions Clinical trials Development of new technologies 2. Epidemiologic and behavioral studies 3. Outcomes research and health services research. Clinical trials: Clinical trials are research studies which try to answer scientific questions and find better ways to treat or prevent diseases. A clinical trial is conducted to determine whether a new

drug or treatment is both safe and effective in people. These research studies rely on Healthy subjects / patients who volunteer to participate and try a new drug or treatment. Most clinical trials that involve the testing of a new drug follow a series of steps, called phases. This process allows researchers to ask and answer questions in a way that results in reliable information about the drug and protects the patients. Clinical trials are usually classified into one of four phases: In Phase I trials Researchers test a new drug or treatment in a small group of people (2080) for the first time to evaluate its safety, determine a safe dosage range, and identify side effects. In Phase II trials The study drug or treatment is given to a larger group of people (100300) to see if it is effective and to further evaluate its safety. In Phase III trials The study drug or treatment is given to large groups of people (1,0003,000) to confirm its effectiveness, monitor side effects, compare it to commonly used treatments, and collect information that will allow the drug or treatment to be used safely. In Phase IV trials Post marketing studies delineate additional information including the drug's risks, benefits, and optimal use. Biological E Limited currently conducts only Phase-III and Phase-IV studies in accordance with ICH Good Clinical Practice (GCP) guidelines. Biological E Limited also complies with the Drug and Cosmetics Act 1940, Indian regulatory guidelines, laws and standards governing the development and manufacture of Pharmaceutical products

CLINICAL RESEARCH
Clinical & Regulatory Affairs The Clinical and Regulatory Affairs (CRA) of Biological E. Limited was established in 2002 with a vision to create a force in the clinical research arena in full compliance with ICH - Good Clinical Practice (GCP) guidelines. Its mission is to engage in challenging Phase-II to Phase-IV clinical research programmes for a growing portfolio of domestic and internationally based pharmaceutical clients. The CRA team consists of young, dynamic, passionate and enthusiastic research professionals. They are capable of meeting and delivering robust results to all study requirements through experience and commitment. CRA respects and values the relationship it shares with associated organizations, right from understanding the study requirements to designing the study and tracking it to completion. CRA is Committed To completing projects successfully To meeting project timelines. To providing accurate results

 To accelerate decision-making To focus attention at every stage of work To efficient and cost-effective systems and services. Achievement In the short span of three and a half years the CRA team has successfully conducted 4 single and multi-centric Phase III and IV trials on a total population of 602 healthy volunteers. CRA is currently working on two more studies in the area of preventive vaccines.

PARTNERSHIP
Biological E.Limited currently has productive partnerships with several well respected and renowned Institutions and Public Health Services across the world. These collaborations are aimed at giving us access to innovative products for the future. It is also in keeping with the Company's overall philosophy of preventing major lifethreatening illnesses and making critical preventive healthcare accessible to the common man. Details of our current partners and collaborators are given below: Nederlands Vaccine Institute (NVI), Netherlands: NVI is a part of the Ministry of Health, Netherlands and is a premier institute in the world for vaccine development. Biological E Limited has a technical partnership with NVI for Haemophilus Influenzae B vaccine (Hib).

Intercell AG, Austria: Intercell is a leading research based vaccine institute in Europe. Biological E Limited has a joint development and marketing relationship with Intercell AG with regard to the Japanese Encephalitis (JE) vaccine.

National Institute of Health (NIH), U.S.A. :The NIH is a part of the Public Health Service (PHS) under the Department of Health and Human Services (DHHS), USA . The NIH is a leading research institute, Headquarters in Bethesda, Maryland, USA. Biological E Limited has an agreement with them for the development and production of Dengue and Rota Virus vaccines.

Indian Institute of Science (IISc), Bangalore - India: The IISc is a premier institute imparting higher education and research in science. Biological E Limited had obtained the Hepatitis - B technology from the IISc, Bangalore.

International Centre for Diarrhoeal Disease Research (ICDDR), Bangladesh The ICDDR is a leading cholera institute supported by the Centre for Health and Population Research at Dhaka. Biological E Limited has a tie up with the ICDDR to develop and manufacture Cholera Vaccine.

RESEARCH PIPELINES
BE features a broad range of promising projects in various stages of development. Some of which are highlighted below:

VACCINES IN PIPELINE Haemophilus Influenzae type b conjugated vaccine The Haemophilus type B conjugate vaccine is a liquid and lyophilized preparation of Haemophilus type B capsular polysaccharide (Polyribosyl-Ribitol-Phosphate {PRP}) covalently bound to tetanus toxoid carrier protein. The carrier protein, when conjugated to PRP, is capable of inducing a T-cell dependent B-cell immune response to the polysaccharide. DTwP-HBV combination - DTwP-HIB combination DTwP-HBV-HIB combination is under clinical development process. The DTwP-HBV combinations are currently undergoing Phase-III human clinical trials. Meningitis vaccine This vaccine is under research and development in which polysaccharides developed from serotypes A, C, W & Y will be mixed to formulate the vaccine. Already serotype A and C polysaccharides have been standardized.

Chapter-4
ANALASYS AND INTERPRETATION
1. What are the types of compensation does your Organization Provide?
Attitudes Monetary No. of respondents Percentages Non-Monetary Both 16 0 80 0 Total 4 20 20 100

80 70 60 50 40 30 20 10 0 Monetory NonMonetory Both

No of respondents Percentages

INTERPRETATION: 80% of people says that their company provides monetary compensation 20% of people says that their company provides monetary and non-monetary compensation. 2. Do you receive benefits for a work place injury?
Attitudes No of respondents Percentages Yes 19 95 No 1 5 Total 20 100

100 80 60 No. of Respondents 40 20 0 Yes No percentages

INTERPRETATION: 95% of the employees agree that their company provides benefits for work place injury. It would better that total 100% assurance.

3. Are you satisfied with the current compensation system?

Attitudes No of respondents Percentages Good 8 40 Average 9 45 Satisfied Not Good 2 1 10 5 Total 20 100

45 40 35 30 25 20 15 10 5 0

No. of respondents Percentages

Good

Average

Satisfied

Not Good

INTERPRETATION: 40% of the people says that their salaries are good. 45% of the people says that their salaries are average. 10% of the people says that their salaries are satisfied what ever they get. 5% of the people says that their salaries are not satisfied hence they said not good.

4. Do you feel a good compensation package is enough for higher productivity? Attitude No. of Respondents Percentages Yes 17 85 No 3 15 Total 20 100

100 80 60 40 20 0 Yes No No. of Respondents Percentages

INETRPRETATION: 85% of the people in company feels that a good compensation package is enough for higher productivity. Remaining employees doesnt feel so. 5. Does a salary raise in the organization improves efficiency and generates co-operation among your employees? Attitude Yes No Cant Say Total No. of Respondents 16 1 3 20 Percentages 80 5 15 100

80 70 60 50 40 30 20 10 0 Yes No Can't Say

No. of respondents Percentages

INTERPRETATION: 80% of the employees agree that raise in salary helps in improving in efficiency and cooperation among employees. 15% of employees opinion is cant say. 5% of the people says no, hence they disagree. Hence, majority of the employees feels that raise in salary helps organizational growth. 6. Does your organization have a compensation linked to HR strategies to retain the best talent? Attitude No. of Respondents Percentages Yes 13 65 No 3 15 Dont know 4 20 Total 20 100

70 60 50 40 30 20 10 0 Yes No Don't Know No. of respondents Percentages

INTERPRETATION: 65% of the employees saying that organization have a compensation linked to HR strategies to retain the best talent. 15% of the employees are disagreeing with this factor. 20% of the employees cant say.

7. Does your companies follows its own internal compensation system or Government Wage Board Recommendations? Attitude No. of Respondents Percentages
50 40 30 20 10 0 Com pany Board Wage Board Integrated Dont Know No. of Respondents Percentages

Company Board 8 40

Wage Board 0 0

Integrated 3 15

Dont Know 9 45

Total 20 100

INTERPRETATION: 40% of the employees agree that their company follows government wage board system. 15% of the employees says that their wage board is partly internal and partly government wage board, i.e., integrated. 45% of the employees dont know about wage board.

8. Are you entitled to any other employee benefits or services besides to salary? Attitude No. of Respondents Percentages
70 60 50 40 30 20 10 0 Yes No No. of respondents Percentages

Yes 13 65

No 7 35

Total 20 100

INTERPRETATION: 65% of the employees are enjoying employee benefits besides their basic salary. 35% of the people are not getting other benefits apart form salary.

9. Please specify the forms of benefits or services being offered by the company? Attitude No. of Respondents Percentages Medical 7 35 Travel Reimbursements All Allowances 0 0 13 0 0 65 Total 20 100

70 60 50 40 30 20 10 0 Medical Reimbursements No. of Respondents Percentages

INTERPRETATION: 35% of the employees are getting medical benefits apart form salary. 65% of the employees are getting benefits like medical, travel allowances, reimbursements. 10. In one year how many times your compensation reviewed? Attitude No. of Respondents Percentages Quarterly 0 0 Half yearly 0 0 Annually 20 100 Total 20 100

100 80 60 40 20 Quaterly Half Yearly Annualy INTERPRETATION: 100% of the people says that every annual period their salaries get reviewed. 11. Are there any delays in salary payment (citing issues)? 0 No. of Respondents Percentages

Attitude No. of Respondents Percentages

Often 2 10

Sometimes 5 25

Not at all 13 65

Total 20 100

25 20 15 No.of Respondents 10 5 0 Percentages

Often

Sometimes Not at all

INTERPRETATION: 10% of the people says often their salaries get delayed. 25% of people says that sometimes their salaries get delayed. 65% of the people says that their salaries not at all get delayed. Hence, delay in salary has to overcome by the company in order to retain the employees.

12. Are increments integrated with performance evaluation? Attitude No. of Respondents Percentages Yes 18 90 No 0 0 Dont Know 2 10 Total 20 100

90 80 70 60 50 40 30 20 10 0 Yes No Don't Know

No. of Respondents Percentages

INTERPRETATION: 90% of the people strongly agree that increments integrated with performance evaluation. 10% of the people are not agree with this factor.

13. Do the compensation plan support strategic goals of the organisation? Attitude No. of Respondents Percentages
60 50 40 30 20 10 0 Yes No Don't Know No. of Respondents Percentages

Yes 11 55

No 0 0

Dont Know Total 9 45 20 100

INTERPRETATION: 55% of the employees agree that proper compensation plan will support strategic goals of the organization. 45% of employees feels compensation alone cannot set the goal of the organisation. Hence, apart from compensation other things need to be undertaken.

14. Do you study and compare the companys compensation program along with external market rate? Attitude No. of Respondents Percentages Yes 8 40 No 5 25 Dont Know Total 7 35 20 100

40 35 30 25 20 15 10 5 0 Yes No Don't Know No. of Respondents Percentages

INTERPRETAION: 40% of the employees says that their management follows external market rate in compensation system. 25% of the employees says their management doesnt follow external market rate. 35% of the employees dont know about the compensation system.

15. Do you have any workers union? Attitude No. of Respondents Percentages Yes 13 65 No 7 35 Total 20 100

70 60 50 40 30 20 10 0 Yes No No. of Respondents Percentages

INTERPRETATION: 35% of the people saying that they dont have any workers union in the company. 65% of the people saying that they have any workers union in the company. Since workers union is there company should concentrate more on employee benefits in order to retain talented people.

CHAPTER-5

FINDINGS

Senior officer/ executives in this organization take active interest in their juniors and help them to learn their job. 75% of employees opinion in the organization is that they have freedom to express their ideas during meetings. This organization ensures employees welfare to such an extent that the employees can save a lot of their mental energy for work purpose.

80% of employees opinion is that the safety and health training programs are conducted effectively. People lacking competencies in doing their jobs are helped to acquire competence rather than being left unattended There is an appraisal system in the organization to reward any good work done or contribution made by employees. The employees are satisfied with the present pay and employee welfare facilities. The workers are made permanent once they are into the organization, and the facilities are provided up to their satisfaction.

SUGGESTIONS

Compensation should be as per the government wage board recommendations. An employer should provide additional benefits to their employees.

The workers permanency should be made within their five months of joining into the company according to the labor laws. The psychological climate is to be improved in this organization, so that it facilitates any employee in developing himself by updating knowledge and skills related to their job. The promotion decision should be based on suitability of the promotion rather than on appraisal system. Management should study and compare compensation system with the external market rate. Just a raise in salary will not help in organizational growth apart from salary organizational benefits will improve the efficiency an co-operation among the employees. Suggestion box could be used to gather information about training from employees to encourage participation. Good suggestion can be rewarded.

CONCUSIONS
After conducting an intense study on employee satisfaction in BIOLOGICAL E LIMITED we have arrived at the following conclusion-

There is a high level of awareness among the employees with respect to benefits and salaries provided in the organization. Majority of the employees are satisfied with the benefits provided by the company. The satisfaction of employees at BIOLOGICAL E LIMITED was found to be good.

Chapter 6

BIBLIOGRAPGHY

PERSONNEL/HUMANRESOURCEMANAGEMENT DAVID A. DECENZO & S.P ROBBINS

Essentials of human resource management and industrial relations. P.Subba Rao

Organizational Behavior Ashwatappa. Annual reports of BIOLOGICAL E Ltd. Strategic Compensation: Joseph.J.Martocchio (Executive Compensation) Compensation Management: Milkorich & Newman (Compensation Strategies, process & models)

Websites: www.biological e.com www.citehr.com www.scribd.com www.hrhub.com

Questionnaire for Compensation Management

1. What are types of compensation does your organization provide? A. Monitory B. Non-monitory C. Both.

2. Do you receive benefits for a work place injury? A. Yes B. No

3. Are you satisfied with the current compensation system? A. Good B. Average C. Satisfied D. Not good

4. Do you feel a good compensation package is enough for higher productivity? A. Yes B. No

5. Does a salary raise in the organization improves efficiency and generates co-operation among your employees? A. Yes B. No C. Cant say

6. Does your organization have a compensation linked to HR strategies to retain the best talent? A. Yes B. No C. Dont know

7. Does your companies follows its own internal compensation system or Government Wage Board Recommendations? A. Company Board B. Wage Board C. Integrated D. Dont know

8. Are you entitled to any other employee benefits or services besides to salary? A. Yes B. No 9. Please specify the forms of benefits or services being offered by the company? A. Medical B. Travel Allowance C. Reimbursements D. All

10. In one year how many times your compensation reviewed? A. Quarterly B. Half Yearly C. Annually

11. Are there any delays in salary payment (citing issues)? A. Often B. Sometimes C. Not at all

12. Are increments integrated with performance evaluation? A. Yes B. No C. Dont know

13. Do the compensation plan support strategic goals of the organization? A. Yes B. No C. Dont know

14. Do you study and compare the companys compensation program along with external market rate? A. Yes B. No C. Dont know

15. Do you have any workers union? A. Yes B. No