Healthcare Distributions Co.

About the Company:

Healthcare Distribution Company is a company duly incorporated in Bangladesh. The company is committed to distribute the Pharmaceuticals Products to the customers effectively and efficiently. The mission of the company is Right products to the right customer on right time.

At present Healthcare Distribution Co is serving Healthcare Pharmaceuticals Ltd, a well reputed company in the Pharmaceuticals Industry of Bangladesh. Healthcare Pharmaceuticals Ltd is quite satisfied with the service provided by Healthcare Distribution Co.

Healthcare Distribution Co have countrywide establishment and network facilitating the clients through 13 branches spread over the nation. It has got a very efficient management with dynamic leadership. Now the company is capable enough for diversification and serving other companies in the Pharmaceuticals Industry. The management is confident that the prospective customers will be extremely satisfied with the service they provide.

Organizational Information:
Healthcare Distribution Company was established in November 1996. It is owned by Mr. Alauddin Ahmed. The Head Office is situated at 3/3-A-1, East Rampura, Dhaka-1219. It is a nine storied building where each floor occupies a space of 3200 sq. feet.

Below lies the organizational chart of Healthcare Distribution Company:

Chairman
Vice Chairman Administrative Director General Manager
Head Office Human Resource Department Accounts Department Logistics Department MIS Department
Bogra

Depot Office
Dhaka Chittagong Sylhet Mymensingh Khulna Rajshahi

Purchase Department PPMM Department

Faridpur Jessore Rangpur Comilla Noakhali Barisal

Audit Department

Here, is a map of the outlets throughout the country:

Our main focus in this project was to know about the Job Satisfaction, Job Involvement and Commitment Level of Employees, who are serving the Healthcare Distributions Co. So, we emphasized on the Human Resource Department. Here is a hierarchical representation of the HR Department:

Human Resource Department

Head of HR (Deputy Manager) (Md. Abul Kalam Azad)

Officer HR

Assistant Officer

Peon

Cleaner

Methodology:
For our report, we interviewed Mr. Abul Kalam Azad. He is the Deputy Manager, HR of Healthcare Distributions Co. On interviewing the HR, we got a brief idea about the work environment of the employees working for the Healthcare Distributions Co. With his unconditional support, we also managed to conduct a small survey on a random sample of 5 employees. So, our query about employee satisfaction, involvement and commitment level was fulfilled. The questionnaire used in this survey is given in the Appendix section.

Interviewing the HR of Healthcare Distributions Co.

Theoretical Relevance:
Job Satisfaction:
1) Working Environment & Co-workers Behavior:
There was a question in the questionnaireHow much are you satisfied with the current working environment and your co-workers behavior?

i. ii. iii. iv. v.

Very satisfied Satisfied Moderate Dissatisfied Very dissatisfied

This was the response:

Name/Level

Very satisfied

Satisfied

Moderate

Dissatisfied

Very Dissatisfied

Waliul Ansar Bijoy

 Hanif Masud

From the responses, it could be easily determined that 80% of the employees are satisfied with the environment, they work in.

Further, on talking with these 5 employees, we found out that they are satisfied because not only their coworkers are good with them but even the management is really friendly to them.

2) Income Level:
Accordance to the following characteristic, we made a questionWhat is your feeling about your current level of income? i. ii. iii. good enough fairly low indifferent

This was the response:

Fairly Low

Name/Level

Good Enough

Indifferent

Waliul

 Ansar Bijoy Hanif Masud

Although this same workers were satisfied with their working environment but the results regarding their current income level was disappointing. None of them said they were happy with their salary. In fact, 60% of the employees thought that it was fairly low.

However, when we talked to the HR manager on this issue, he informed us that there some employees who are never satisfied with their pay. This is because recent price hikes has caused the value of money to deteriorate. As a result, even pay rises cannot fulfill the needs of the employees. So, the HR faces difficulty while motivating these employees to give their best performance.

In order to make these employees give their best shot the company follows the strategy of performance based appraisal. As a result, the employees can receive 4-5 increments every year. The increment factor acts as a motivator for the employees to perform at their best.

The HR also told us that the payment system followed in Healthcare Distribution Co. is totally opposite to the government policy. Healthcare Distribution Co. maintains a payment system of Gross to Basic.

3) Benefits:
Apart from pay, additional benefits like small loans, company sponsored trainings, seminars; healthcare facilities can also provide job satisfaction. So, we tried to find out how employees feel about the benefits presented by Healthcare Distributions Co. through the following question:

Are the benefits that your company is extending to you is sufficient?

i. ii. iii. iv.

Fully Moderately Not much Not at all

This was the response:

Name/Level

Fully

Moderately

Not Much

Not At All

Waliul Ansar Bijoy Hanif

 Masud

It can be said that almost every employee is satisfied with the benefits that they are being provided by the company.

Healthcare Distribution Co. says that they want to help their employees in any manner they possibly can.

4) A Note from the HR:

During the interview, we came to know a very important fact about the HR. He himself told us that previously he used to work in the marketing sector. Later, he shifted to the Human Resource Sector. He admits that the pay for his current job is lower than the previous one but still he is more satisfied working as a HR. Moreover, he emphasizes more on the working environment than on the level of pay. It is his belief that money is important but not everything.

 Job Involvement:
1) Identifying With The Job:
To what extent, you are known by the task you perform? i. ii. iii. high moderate low

Name/Level

High

Moderate

Low

Waliul (Driver) Ansar (Driver) Bijoy (Driver) Hanif (Cleaner) Masud

The first three were the drivers of the truck which are used to distribute the pharmaceutical items. So, they are known by their tasks according to which areas they serve for distribution. Fourth one was the cleaner so he is known for his work. Last one just helps in loading boxes in

the truck. He is just 1 of the many employees who packages and loads the boxes. As a result, he is not recognized much for his task. Therefore, the first 4 employees are highly involved with their job.

2) Empowerment:
Does your work give you the authority & independence to do your job?

i. ii. iii. iv.

Very much Moderately Not much Not at all

This was the response:

Name/Level

Very much

Moderately

Not Much

Not At All

Waliul

Ansar

Bijoy

Hanif

Masud

As we have already inform you that the 1st three are drivers. So, it is very obvious that they experience psychological empowerment to a very much extent. Their perceived autonomy is high as they can drive their trucks to their stated destinations on their own way. And, of course their work is important. If they do not distribute pharmaceutical products properly, the Healthcare Distribution Co. can never become successful. While the 4th is a cleaner who cleans the office in his own way but under some supervision. The last one does not have any decision taking power. He just packs the pharmaceutical boxes in the way he is asked to.

3) Level of Skill:
To what extent, your job requires being skilled?

i. ii. iii.

High Moderate Low

Name/Level

High

Moderate

Low

Waliul (Driver) Ansar (Driver)

 Bijoy (Driver) Hanif (Cleaner)

Masud

The 1st three being drivers need to be highly skilled to drive carefully. They are highly involved. While the cleaner and the 5th one who helps in packaging need not to be that skilled. They experience moderate involvement with their job.

4) A Note from the HR:

Previously, we have mentioned that the HR shifted to his current job from the marketing sector. On this issue, he told us that psychological empowerment was one vital reason for which he shifted to working as a HR. In his previous job, he did not have much decision making power. On the hand in his current job, he experiences huge autonomy while performing his job. Since Healthcare Distribution Co. is mainly employee oriented and the main job of the HR is to manage these employees, he is undoubtedly responsible for the companys success to a very great extent. Now, with his current job, he feels highly involved with great deal of psychological empowerment.

 Organizational Commitment:
1) Affective Commitment:
Related to this topic, we had two questions in our questionnaire:

a) What makes you attached to the company? i. ii. iii. Emotional needs Financial needs Social needs

This was the response:

Name/Options

Emotional Needs

Financial Needs

Social Needs

Waliul

Ansar

Bijoy

Hanif

Masud

It was interesting to find that all the employees said they are financially attached to Healthcare Distribution Co. This showed that the affective commitment of employees is very low. This can have negative impact on the level of performance of employees since affective commitment is positively related to performance.

b) During a time of crisis, are you willing to work harder than you do in order to help your company succeed? i. Yes ii. No

Name/Options

Yes

No

Waliul

Ansar

Bijoy

Hanif

Masud

The results of this question contradict with the results of our previous question. Previously we found that employees are attached to the company because of financial needs which meant low level of affective commitment. But now, we can see that employees are eager to help out their company when in need. This gives evidence of high affective commitment.

2) Continuance Commitment:
Related to this topic, we had two questions in our questionnaire:

a) What makes you stay in this company? i. Continuous positive reinforcements ii. Frequent salary increment iii. Other benefits iv. For the sake of earning

This was the response:

Name/Options

Continuous positive reinforcements

Frequent salary increment

Other benefits

For the sake of earning

Waliul

Ansar

Bijoy

Hanif

Masud

From the responses of the candidates, we concluded that the continuance commitment of employees is high. They work their solely to satisfy their needs. This five people comes from a poor family background and it is not really easy for them to leave the job just because they are not fully satisfied. They need to run their family and in order to do so they need to earn. So, their perceived economic value of remaining with the organization in compared to leaving it is very high for these employees.

3) A Note from the HR:

According to the HR, he identifies with his employing organization. He plans to work for a long time for Healthcare Distributions Co.

On the issue of affective commitment, the HR provided valuable insight. He said that many of the employees can not become emotionally attached to the company because they see some of the systems as unfair. For instance, there are some transfers made just because the top management wants it to happen. They never give any clear justification behind the transfers. In addition, some employees come to know from peers that that particular peer was selected because he was a reference candidate. On hearing such things, employees feel demoralized. They think their input has no value and thus, performance suffers.

Moreover, some of the employees fear that the reference candidates might be paid more than they are being paid for the same level of task performed. Such perceptions have adverse effects on the performance of employees.

Problems:
Perceived level of income is low:
From the survey, it was evident that employees are not satisfied with their current level of income because they perceive it as low. This would have a negative impact on performance as the motivation to perform would be low.

Commitment of employees is low:

Employees do not identify themselves with the organization. This can hamper the performance level of employees to a very great extent.

Future success might be hampered:

If other companies hire the employees of Healthcare Distributions Co. at a higher payment, then those companies can gain a competitive advantage by knowing some of the policies of Healthcare Distributions Co. if not all. This can only reduce the chances of succeeding in future but can also act as a threat to the existence of Healthcare Distributions Co.

Small conflicts among employees might become big at any time:

When an employee comes to know about another employee being kept in the job since he was suggested by top management, this particular employee might feel that his works are valued less by the organization in compared to that of reference candidate. This might create a grudge against the reference employee and thus, reducing scope of organizational success.

Recommendation & Implementation:

Increase pay:
Employees are not satisfied with their level of income. Thus, they are not motivated to perform with their full potential. It is very necessary to make these employees happy in order to get the best out of them. So, increase their salary. Due to the pressure from the top management, as mentioned by the HR, it is not that easy to increase pay. In order to implement this strategy, we would suggest that some of the employees are reduced so that salary of others can be increased by keeping the total salary constant. Hence, job satisfaction can be increased more.

Introduce different benefit plans:

From the utilitarian perspective, it would not be wise to cut off some of the employees. If management feels that without firing some employees, it would not be easy to increase salary, they can instead go for the strategy of Flexible Spending Plans. Since they are the company is already providing other benefits, they can adopt to this strategy more easily. The employees come from a low educational background. In order to implement this strategy, Healthcare Distributions Co. needs to make their employees understand what the benefit plan is about. The employees must know that the benefit plan would allow them to set aside up to the Taka amount offered in the plan to pay for particular services, such as healthcare facilities. As a result, the take home pay of employees would increase and they would feel more satisfied with their job, thereby, increasing the level of performance.

 Reduce chances of employees leaving Healthcare Distributions Co. early:

It is highly recommended that the job satisfaction of employees with regard to their income level must be increased. From our sample survey what we found out that employees perceive their income as low and that is a point where they are highly satisfied with their current job. So, if something is not done about it quickly, other organizations might hire these employees at a higher pay. This would give them some valuable insight about the strategies of Healthcare Distributions Co. if not all and they can easily gain a competitive edge. Thus, Healthcare Distributions Co. would be lagging behind. In order to reduce such chances, Healthcare Distributions Co. must implement strategies which would motivate them to stay longer with their current job. This would also help to increase organizational commitment. Thus, the prosperity of the organization would not be threatened.

Make some of the major systems crystal clear so that employees perceive it as fair:
According to the HR, emotional attachment of emp loyees is low simply because they perceive some of the company policies as unfair. They see some of the transfers as illogical. In addition, they feel some of the other employees receive pay rises more than often without any reason. It is their feeling that some employees receive pay rises simply because of being a reference candidate and liked more by the top management. Therefore, we would recommend Healthcare Distributions Co. to make these particular systems clear to the employees. They should specify reasons to employees before a transfer is made. Also, they should let the employees know about the measure that is being followed to facilitate pay rise. In order to implement the above mentioned recommendations, for transfers, the HR can hand that particular employee a transfer letter where the reasons behind his transfer is clarified. And for the increments, top management can facilitate a notice board where the system of performance based appraisal would be stated clearly. In this way employees would get to know how their performances are being measured and with increments they

would actually feel that their work is being valued by the organization. Moreover, they would perceive the company policies as fair enough to be satisfied.

Give scope to employees to know each other well:

Facilitate greater space and chance to employees to know each other. This would help them to resolve conflicts amongst themselves and reduce chances of making those small personal problems a big issue for the organization itself. This can be implemented by providing a small room where employees can have some entertainment during breaks. They can play small games like cards and get to communicate with each other in the meantime. This would help to reduce small grudges against each other. Thus, contributing towards the well-being of Healthcare Distributions Co.

Conclusion:
From our sample survey conducted on the employees of Healthcare Distributions Co. it can be concluded that the main problem that lies in the organization is the perceived lower pay. This is the root cause of lower job satisfaction and less organizational commitment. So, it is highly recommended that the point of view of employees towards their income must be changed. Thus, opening doors for Healthcare Distributions Co. towards greater success, in future.

For further information about Healthcare Distributions Co.

www.hdcbd.com/

Appendix:
A questionnaire to figure out the satisfaction, involvement and commitment level of employees:
Job Satisfaction:
Q1: If a good friend of yours told you that he or she is interested in working at a job like yours at this company, what would you say?

i. ii. iii.

Would recommend it Would advise against it Would ask to reconsider his or her decision

Q2: What is your feeling about your current level of income? i. ii. iii. good enough fairly low indifferent

Q3: How much are you satisfied with the current working environment and your co-workers behavior?

i. ii. iii. iv.

Very satisfied Satisfied Moderate Dissatisfied

v.

Very dissatisfied

Q4: Are the benefits that your company is extending to you are sufficient?

i. ii. iii. iv.

Fully Moderately Not much Not at all

Q5: Which attribute of a job is most important to you?

i. ii. iii. iv.

Work environment Salary Work itself Superior-subordinate relationship

Job Involvement:
Q6: To what extent, you are known by the task you perform? i. ii. iii. high moderate low

Q7: Does your work give you the authority & independence to do your job?

i. ii. iii. iv.

Very much Moderately Not much Not at all

Q8: Are you receiving proper supervision and feedback?

i. ii. iii. iv.

Definitely Moderately A little Not really

Q9: To what extent, your job requires being skilled?

i. ii. iii.

High Moderate Low

Q10: Why do you perform the task?

i. ii. iii.

Just for the sake of doing To avoid negative reinforcements Task that I perform are personally meaningful to me

Organizational Commitment:
Q11: What makes you attached to the company?

i. ii. iii.

Emotional needs Financial needs Social needs

Q12: During a time of crisis, are you willing to work harder than you do in order to help your company succeed?

i. ii.

Yes No

Q13: What makes you stay in this company?

i. ii. iii. iv.

Continuous positive reinforcements Frequent salary increment Other benefits For the sake of earning

Q14: Would you turn down another job for more pay in order to stay with this company?

i. ii.

Yes No

Q15: Are you proud to be a part of this company?

i. ii.

Yes No