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SQUARE PHARMACEUTICALS LTD.

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Our topic is
SQUARE PHARMACEUTICALS LTD.

Submitted To:
Rumana Afroz
Senior lecturer
Department Of Business Administration
East West University

Submitted By:
Name
Khandaker Mizbah Uddin
Abdur Rab Al Mohaimin
Sabrina Mithila

ID
2012-3-10-099
2012-3-10-096
2012-3-10-082

Date of Submission: 21/07/2013

LETTER OF TRANSMITTAL

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To
The honorable faculty
Department of management
East West University
Sub : A Report on the management process of Square group.
Dear Madam
As your instruction, we are submitting the attached report on Square Pharmaceuticals LTD.
We are pleased to enclose a report on management process involves decision making process,
planning process along with notes thereon of Square Pharmaceuticals LTD and its
Subsidiaries for your kind information and records.
Yours sincerely
Khandaker Mizbah Uddin
On behalf of the group members.

AC KN OWLED GMENT

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At first we would like to express our gratitude to almighty god for enabling us the strength
and opportunity to complete the report within the schedule time successful.
We know that practical knowledge in subject matter is essential to sub assistant the
theoretical knowledge gathered in the educational institution. In order to resolve the
dichotomy between these two areas, we was assigned to prepare this report on SQUARE
Group of Companies.
This report would not have been possible without the dedication and contribution of a number
of individuals as it involved field of knowledge and experience. The list of those greater
persons, who helped me and guided me to prepare the report is very long and cannot be
accommodated within this limited space. But it will be unfair to ignore acknowledge some of
them as they contributed so much to my effort of writing a worthy report.
First and foremost, we would like to express my gratitude to Rumana Afroz ; senior lecturer,
Honorable faculty member, Department of Business Administration East West university,
Bangladesh for agreeing to supervise me during this project. His Eagerness to help us every
step of the way encouraged us to propel myself higher.

Executive Summary

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SQUARE Pharmaceuticals LTD is one of the leading business enterprises of Bangladesh.


After a 54 year long journey, it is a symbol in the business world of Bangladesh. But the
journey was not easy. The company met its downfall in more than one occasion. But because
of the great leadership skill of Mr. Samson H Chowdhury, the company overcame all its
hindrance and finally became what it is today. What started as a small pharmaceutical
company expanded its branches and became a huge group of company. Here is a brief
timeline of the journey of the extraordinary company. In this report, I tried to focus on the
activity and governance of the company. I have used primary and secondary information for
completing the report. Based on that information I tried to do our best to include all the
information in this report. I found that SQUARE Pharmaceuticals LTD maintain a very good
corporate governance strategy for all its companies. In SQUARE Pharmaceuticals LTD it is
made sure that all the employees voice is heard.
By doing this report I got real experience of how the organization operates and manages its
companies. The information providers inside SQUARE Pharmaceuticals LTD were really
helpful. They helped me by giving us related information about the report.

Table Of Contents

Subjects
Objectives of the study
Methodology of the study

Page No.
09
10
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Chapter 2:
Company Overview

Chapter 3:
Theoretical background
Chapter 4:
Analysis
Chapter 5:
Findings
Chapter 6:
Conclusion
References
Appended Parts

Scope of the study


Limitations of the study
History of the organization
Vision, Mission, Goal

11
12
14-15
16

Decision making process


Steps in decision making
Types
Conditions
Decision making styles
Planning
Types of planning
Steps in planning
Planning practices of SPL
Decision making practices of
SPL
Benefits of the study

22-25
26-28
29
30-31
32
33-34
35-37
38-40
49-56
57-59

Recommendation
conclusion
List of references
Appendix
Bibliography

62-63

60-61

64

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Chapter 1:
Introduction

Study background

In our assignment, we have discussed about the management process of Square group.
Actually we have focused on their planning process, decision making process, controlling
process and so on. By surveying square group, we have collected many information about
their management system and presented these information under respective headlines in our
assignment.
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Objective of the study

The main purpose of our study is to know the management process basically the planning,
decision making, controlling process of a large multi-departmental company to better
understand the knowledge of our theoretical subject. By practically observing their company
we learnt a lot about real organization activities. As a student of business administration, we
should have such kind of practical knowledge. So we have visited Square group and collected
several information about their managerial activities to improve our theoretical knowledge.

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Methodology of the study

Information used to prepare this report has been collected from both primary and secondary
sources. The primary sources have provided the report with reliable information relating to
SPLs planning and measures to cope up with current market scenario. On the other hand, the
secondary sources have been an essential source of information regarding the pharmaceutical
industry worldwide and domestically, different companies operating in Bangladesh, data for
trend analysis considering value, share and growth and also data regarding numbers of
prescribing any molecule by doctors which depicts doctors shift of preference over time.

Primary Sources: Primary information was collected from the product managers
working in SPLs Product Management Department for relevant therapeutic classes.
This information collection was done through set questionnaire with some generalize
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and specific question. Informal discussion with my onsite supervisor and other staffs
were also helpful for gathering information for this report.

Secondary Sources: The report basically is prepared by analyzing data from


secondary sources. There are two main secondary sources from which data are
collected. These are numerical data related to the values, share and growth of
different molecules and brands under each therapeutic class. Other secondary sources
are also used for successful completion of this report. The sources are,
o IMS: Information Medical Services (IMS) is a Switzerland base survey
company that supplies the pharmaceutical industry with sales data and
consulting services. IMS collects pharmaceutical sales and prescription data
from markets across the world. IMS also uses their own data to produce
syndicated reports such as market forecasts. These predict how a market in a
specific country or specific therapy area will change over time. They provide
reports to every company in each quarter. For this report data from June 2006
to June 2010 was collected from IMS software are used for analysis.
o MRPC: Market Research and Planning Cell (MRPC) is one key functional
department in SPL which performs market survey on the Bangladesh
Pharmaceutical Market. These data of prescription statistics were collected
from this department through my onsite supervisor.

Annual reports of Square Pharmaceutical Limited.

Different websites providing information on the Square group worldwide and


Bangladesh.

Scope of the study

In our assignment we actually discussed about almost total management process of square
group. We presented several information about their decision making process (like how they
evaluate and select alternatives, who make decisions), controlling process actually the overall
planning process. We broadly discussed about these areas.

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Limitation of the study

As we physically visit square group, we have to face several obstacles. Some problems are
given in following:

When we visited their office they are feeling uneasy to talk with us.
Some of them behave with us roughly.
Didnt want to give the answers of all questions.
We have to gather many places to collect the answers.
They were not friendly co-operative.
They didnt give us enough time.
We couldnt collect all of our information from each of them.
All of them were not well known about all of the activities.
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Chapter 2:
Company Review
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History of the organization


SQUARE today symbolizes a name a state of mind. But its journey to the growth and
prosperity has been no bed of roses. From the inception in 1958, it has today burgeoned into
one of the top line conglomerates in Bangladesh. Square Pharmaceuticals Ltd., the flagship
company, is holding the strong leadership position in the pharmaceutical industry of
Bangladesh since 1985 and is now on its way to becoming a high performance global player.
SQUARE today is more than just an organization, it is an institute. In a career spanning
across four and half decades it has pioneered the development of the local business in fields
as diverse as Pharmaceuticals, Toiletries, Garments, Textile, Information Technology, Health
Products, Food Products, Hospital, etc. With an average Annual turnover of over US$ 200
million and a workforce of about 3500 the SQUARE Group is a true icon of the Bangladesh
business sector.
History of SQUARE Group
1958 : Debut of Square Pharma as a Partnership Firm.
1964 : Converted into a Private Limited Company.
1974 : Technical Collaboration with Janssen Pharmaceutica, Belgium, a
subsidiary of Johnson and Johnson International, USA.
1982 : Licensing Agreement signed with F. Hoffmann-La Roche Ltd.,
Switzerland.
1985 : Achieved first position in the Pharmaceutical Market of
Bangladesh among all national and multinational companies.
1987 : Pioneer in pharmaceutical export from Bangladesh.
1988 : Debut of SQUARE Toiletries Ltd. as a separate division
of SQUARE Pharma.
1994 : Initial Public Offering of SQUARE Pharmaceutical Shares.
:
SQUARE Toiletries Ltd. becomes a Private Limited Company.
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1995 :
1997 :
:
1998 :
:
2000 :
2001 :
:
:
:
:
:
2003 :

Chemical Division of SQUARE Pharmaceuticals Ltd. starts


production of pharmaceuticals bulk products (API).
Won the National Export trophy for exporting pharmaceuticals.
Debut of SQUARE Textiles Ltd.
Second Unit of SQUARE Textile Ltd. is established.
Agro-chemicals & Veterinary Products Division
on SQUARE Pharma starts its operation.
SQUARE Spinnings Ltd. starts its Journey.
SQUARE Knit Fabrics Ltd. is established.
SQUARE Fashions Ltd. starts its operation.
US Fda/UK MCA standard new pharmaceutical factory goes into
operation built under the supervision of Bovis Lend Lease, UK.
SQUARE Consumer Products Ltd. Started its operation.
SQUARE InformatiX Established.
SQUARE Hospitals Ltd. Incorporated.
Management Agreement with Bumrungrad Hospital International
of Thailand for the management of SQUARE Hospitals Ltd.

Square Group, the most innovative company in Bangladesh pioneered exports of medicine
from the country back in 1987. They have also been active in exporting other pharmaceuticals
and this is one of the main reasons for their success and their increased credibility as a
company.
The founding chairman of this highly innovative company was Samson H. Chowdhury who
died in 2012. Mr. Samson H. Chowdhury was able to put together Square with three of his
friends. It was then appropriately named Square, because it was started by four friends.

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Vision
They view business as a means to the material and social wellbeing of the investors,
employees and the society at large, leading to accretion of wealth through financial
and moral gains as a part of the process of the human civilization.
Mission
Their Mission is to produce and provide quality & innovative healthcare relief for
people, maintain stringently ethical standard in business operation also ensuring
benefit to the shareholders, stakeholders and the society at large.
Objective
Their objectives are to conduct transparent business operation based on market
mechanism within the legal & social framework with aims to attain the mission
reflected by their vision.
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Present sinario
In Bangladesh the pharmaceutical sector is one of the most developed hi-tech sectors which is
contributing in the country's economy. After the promulgation of Drug Control Ordinance 1982, the development of this sector was accelerated. This sector is providing 97% of the
total medicine requirement of the local market. Leading pharmaceutical companies are
expanding their business with the aim to expand export market. Local pharmaceutical sales
have grown to 21 percent in the April-June period, a rise from 19 percent in the first three
months of this year, according to a report of a global pharmaceutical market intelligence
agency. Currently, the market size of the local pharmaceutical industry is worth BDT 70
Billion, said industry insiders. Pharmaceutical sector of Bangladesh forecast to grow by 13
per cent in 2010.
Two organizations, one government (Directorate of Drug Administration) and one semigovernment (Pharmacy Council of Bangladesh), control pharmacy practice in Bangladesh.
The Bangladesh Pharmaceutical Society is affiliated with international organizations
International Pharmaceutical Federation and Commonwealth Pharmaceutical Association.
In July 2010, Prime Minister Skeikh Hasina Wajed urged the World Intellectual Property
Organization (WIPO) for another 15 years waiver of Bangladeshi pharmaceuticals from IPR
restrictions. The current exemption is set to expire in 2016. The Bangladeshi pharmaceutical
industry has achieved rapid growth under the IPR waiver, and there are concerns that the
expiry of this could have adverse effects on the industry. There are 276 small, medium and
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large local and multinational pharmaceutical companies operating in Bangladesh. Of the


companies, the top ten companies take up nearly 70 percent of the total market, according to
an IMS survey conducted in 2008

Table :
Bangladeshs Top Seven Pharmaceutical Companies (June, 2010)
RANK

COMPANY

1
2

SQUARE
INCEPTA
PHARMA
BEXIMCO
ESKAYEF
OPSONIN
PHARMA
RENATA
ACME

3
4
5
6
7

VALUE
(Cr.Taka)
1,156.15
527.31

Growth (%)

464.99
297.48
293.02

19.36
24.90
23.65

282.21
278.83

30.75
7.80

13.36
31.09

Bangladesh is an extremely poor country, and many of the population cannot afford to see
health professionals when they fall ill, therefore been a long tradition of self-medication in
the country. The pharmaceutical distribution network tends to be more retail-orientated and
the bulk of distribution is done by the companies themselves. Meeting over 97 per cent of
total domestic requirements, pharmaceutical products from Bangladesh have reached the
international market spreading over 72 countries around the world including Pakistan, Nepal,
Sri Lanka, India, Thailand and China and are now trying to penetrate into the medicine
market of European and African continents. Bangladesh can compete with these countries in
the international export market due to its quality compliance. According to Export Promotion
Bureau (EPB), pharmaceutical export witnessed 6.21 per cent growth in the fiscal 2008-09,
earning US$45.67 million, which was recorded US$ 43 million in fiscal 2007-08. The annual
per capita drug consumption in Bangladesh is one of the lowest in the world. However, the
industry has been a key contributor to the Bangladesh economy since independence. With the
development of healthcare infrastructure and increase of health awareness and the purchasing
capacity of people, this industry is expected to grow at a higher rate in future.

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Contribution To The Economy


Corporate Social Responsibility (CSR) is the continuing commitment by business to behave
ethically and contribute to economic development while improving the quality of life of the
workforce and their families as well as of the local community and society at large.
Their Business Motivation is Being Good by Doing Well and to conduct transparent business
operations based on market mechanism within the legal, ethical & social framework with
aims to attain the mission reflected by our vision. We scale-up CSR activities to consider the
interests of their external & internal stakeholders like customers, employees, vendors,
shareholders, society, government etc. and ecological & ethical considerations in all aspects
of operations. SQUARE is one of the pioneer signatories of United Nations Global Compact
(UNGC) in Bangladesh. UNGC principles are aligned with companys culture from the very
outset.
SQUARE recognizes that progressive labour policies are good business practices, especially
for a company like us that has global ambition. We follow laws and encourage work
environment that welcomes diversity and also follow non-discrimination & fair treatment
policy both in the recruitment & selection process and performance management system.
They have Trade Union & our HR policies have been continuously up-to-dated as per
existing labour law of the country. They do not allow any female employees during night
shift operations & strictly prohibit any form of forced labour. They actively pursue the policy
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of No child labour in SQUARE.


Transparency & business ethics is the core value of SQUARE and it is strictly followed at
every step of the business processes. Every business in SQUARE is modeled in a way that
enables the management to ensure highest degree of both financial and behavioral
accountability. SQUARE pursues Zero Tolerance policy against all kinds of corruption.
SQUARE's activity goes well beyond the sphere of business. As socially conscious and
responsible corporate body SQUARE is committed to the improvement of the society as a
whole. Meril-Prothom Alo festival sponsored by SQUARE, has become a national calendar
event. SQUARE helps many NGO's in their effort to make available healthcare to the
disadvantage population of the country. It sponsors programs to build awareness on the
healthcare need. SQUARE is also a major sponsor of sporting events in the country.
SQUARE is proud to be a Bangladeshi Company actively involved in various field of
Corporate Social Responsibility.
SQUARE Kindergarten & SQUARE High School
SQUARE Kindergarten is constructed primarily to facilitate quality education to the children
of the employees in Pabna. This is a 100% not- for-profit initiative where the students
receive quality education at a very subsidized fee. Other than its own employees children, it
also provides this education facility for the children of local community. SQUARE
Kindergarten extended its facility from Primary Level (Grade I Grade V) to Secondary
Level (Grade VI and upwards) by establishing SQUARE High School.
Ward for facilitating higher education
In recognition to merit, SQUARE awards Gold Medal to the students of Dhaka Medical
College who secure the first position.
SQUARE is partnering one of the projects of CARE - "Aparajita"
Through this project we ensure empowerment of rural women as they can earn money by
purchasing our products at Trade Price & by selling those products to rural households at
Maximum Retail Price (MRP) and also ensure basic health & hygiene to the rural area by the
sales women in explaining the necessity of using sanitary napkin and health soaps and
making these products available at their doorsteps.
Responsibility towards government:
Highest TAX payer of the country award
SQUARE is reputed and recognized as highest TAX paying organization on a regular basis.
Honorable Chairman of SQUARE group is awarded as highest TAX payer of the country by
the government.
Special Government medicine supply
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SQUARE supplies customized government medicine as per the requirement of Bangladesh


government. Moreover, in times of epidemics and disasters it is always beside the
government with its expanded helping hands.

Chapter 3:
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Theoretical
Background

Decision making process


Introduction:
Decision making can be regarded as the cognitive process resulting in the selection of a
course of action among several alternative scenarios. Every decision making process
produces a final choice. The output can be an action or an opinion of choice. Decision
making is a daily activity for any human being. There is no exception about that. When it
comes to business organizations, decision making is a habit and a process as well.
Effective and successful decisions make profit to the company and unsuccessful ones make
losses. Therefore, corporate decision making process is the most critical process in any
organization.
In the decision making process, we choose one course of action from a few possible
alternatives. In the process of decision making, we may use many tools, techniques, and
perceptions. Usually, decision-making is hard. Majority of corporate decisions involve some
level of dissatisfaction or conflict with another party.
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Human performance in decision terms has been the subject of active research from several
perspectives.

From a psychological perspective, it is necessary to examine individual decisions in


the context of a set of needs, preferences an individual has and values they seek.

From a cognitive perspective, the decision making process must be regarded as a


continuous process integrated in the interaction with the environment.

From a normative perspective, the analysis of individual decisions is concerned with


the logic of decision making and rationality and the invariant choice it leads to.

Logical decision making is an important part of all science-based professions, where


specialists apply their knowledge in a given area to making informed decisions. For example,
medical decision making often involves making a diagnosis and selecting an appropriate
treatment. Some research using naturalistic methods shows, however, that in situations with
higher time pressure, higher stakes, or increased ambiguities, experts use intuitive decision
making rather than structured approaches, following a recognition primed decision approach
to fit a set of indicators into the expert's experience and immediately arrive at a satisfactory
course of action without weighing alternatives. Recent robust decision efforts have formally
integrated uncertainty into the decision making process. However, decision analysis,
recognized and included uncertainties with a structured and rationally justifiable method of
decision making since its conception in 1964.
A major part of decision making involves the analysis of a finite set of alternatives described
in terms of evaluative criteria. Information Overload is when there is a substantial gap
between the capacity of information and the ways we adapt. The overload of information can
be related to problems processing and tasking, which impacts decision making. These criteria
may be benefit or cost in nature. Then the problem might be to rank these alternatives in
terms of how attractive they are to the decision maker(s) when all the criteria are considered
simultaneously. Another goal might be to just find the best alternative or to determine the
relative total priority of each alternative (for instance, if alternatives represent projects
competing for funds) when all the criteria are considered simultaneously. Solving such
problems is the focus of multi-criteria decision analysis (MCDA) also known as multi-criteria
decision making (MCDM). This area of decision making, although it is very old and has
attracted the interest of many researchers and practitioners, is still highly debated as there are
many MCDA / MCDM methods which may yield very different results when they are applied
on exactly the same data.[6] This leads to the formulation of a decision making paradox.
Rational and irrational decision making:
In economics, it is thought that if humans are rational and free to make their own decisions,
then they would behave according to the rational choice theory. This theory states that people
make decisions by determining the likelihood of a potential outcome, the value of the
outcome and then multiplying the two. For example, with a 50% chance of winning $20 or a
10% chance of winning $10, people more likely to choose the first option.
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However, in reality, there are some factors that affect decision making abilities and cause
people to make irrational decisions, one of them being availability bias. Availability bias is
the tendency for some items that are more readily available in memory to be judged as more
frequently occurring. For example, someone who watches a lot of movies about terrorist
attacks may think the frequency of terrorism to be higher than it actually is.

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Steps of Decision Making Process


Following are the important steps of the decision making process. Each step maybe supported by different tools
and techniques.

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Step 1: Identification of the purpose of the decision:

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In this step, the problem is thoroughly analysed. There are a couple of questions one should
ask when it comes to identifying the purpose of the decision.

What exactly is the problem?

Why the problem should be solved?

Who are the affected parties of the problem?

Does the problem have a deadline or a specific time-line?


Step 2: Information gathering:
A problem of an organization will have many stakeholders. In addition, there can be dozens
of factors involved and affected by the problem.
In the process of solving the problem, you will have to gather as much as information related
to the factors and stakeholders involved in the problem. For the process of information
gathering, tools such as 'Check Sheets' can be effectively used.
Step 3: Principles for judging the alternatives:
In this step, the baseline criteria for judging the alternatives should be setup. When it comes
to defining the criteria, organizational goals as well as the corporate culture should be taken it
to consideration.
As an example, profit is one of the main concerns in every decision making process.
Companies usually do not make decisions that reduce profits, unless it is an exceptional case.
Likewise, baseline principles should be identified related to the problem in hand.
Step 4: Brainstorm and analyse the different choices:
For this step, brainstorming to list down all the ideas is the best option. Before the idea
generation step, it is vital to understand the causes of the problem and prioritization of causes.
For this, you can make use of Cause-and-Effect diagrams and Pareto Chart tool. Cause-andEffect diagram helps you to identify all possible causes of the problem and Pareto chart helps
you to prioritize and identify the causes with highest affect.
Then, you can move on generating all possible solutions (alternatives) for the problem in
hand.
Step 5: Evaluation of alternatives:
Use your judgement principles and decision-making criteria to evaluate each alternative. In
this step, experience, and effectiveness of the judgement principles come into play. You need
to compare each alternative for their positives and negatives.

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Step 6: Select the best alternative:


Once you go through from Step 1 to Step 5, this step is easy. In addition, the selection of the
best alternative is an informed decision since you have already followed a methodology to
derive and select the best alternative.
Step 7: Execute the decision:
Convert your decision into a plan or a sequence of activities. Execute your plan by yourself
or with the help of subordinates.
Step 8: Evaluate the results:
Evaluate the outcome of your decision. See whether there is anything you should learn and
then correct in future decision making. This is one of the best practices that will improve your
decision-making skills.
Conclusion:
When it comes to making decisions, one should always weigh the positive and negative
business consequences and should favour the positive outcomes.
This avoids the possible losses to the organization and keeps the company running with a
sustained growth. Sometimes, avoiding decision-making seems easier; specially, when you
get into a lot of confrontation after making the tough decision.
But, making the decisions and accepting its consequences is the only way to stay in control of
your corporate life and time.

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TYPES OF DECISIONS:
Actually there are two types of decisions. These are
Programmed Decision(Structured problem)
Decision
Non Programmed Decision(UnStructured problem)

PROGRAMMED DECISIONS:
Programmed decisions are routine and repetitive, and the organization typically develops
specific ways to handle them. A programmed decision might involve determining how
products will be arranged on the shelves of a supermarket. For this kind of routine, repetitive
problem, standard arrangement decisions are typically made according to established
management guidelines. We can also call it structured problem decision. Lower level
Managers actually handle this problem decision
Example: Deciding to re-order office supply.
NON PROGRAMMED DECISIONS:
Non programmed decisions are typically one shot decisions that are usually less structured
than programmed decision. It occurs much less often a programmed decision. No rules to
follow since the decision is new. This decision actually is made for handle ling the
unstructured problem. And upper level management take this decision.
Example: Choosing a vacation destination.

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DECISION MAKING CONDITIONS


Everyday a manager has to make hundreds of decisions in the organization. Managers do not
function in a theoretical world but they function within the reality that many thongs are not
known. There are three conditions that managers may face as they make decisions. They are
(1) Certainty, (2) Risk, and (3) Uncertainty.

Certainty:
Decisions are made under the condition of certainty when the manager has perfect knowledge
of all the information needed to make a decision. This condition is ideal for problem solving.
The challenge is simply to study the alternatives and choose the best solution.
When problems tend to arise on a regular basis, a manager may address them through
standard or prepared responses called programmed decisions. These solutions are already
available from past experiences and are appropriate for the problem at hand. A good example
is the decision to reorder inventory automatically when stock falls below a determined level.
Today, an increasing number of programmed decisions are being assisted or handled by
computers using decisionsupport software.
Structured problems are familiar, straightforward, and clear with respect to the information
needed to resolve them. A manager can often anticipate these problems and plan to prevent or
solve them. For example, personnel problems are common in regard to pay raises,
promotions, vacation requests, and committee assignments, as examples. Proactive managers
can plan processes for handling these complaints effectively before they even occur.

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Risk:
In a risk environment, the manager lacks complete information. This condition is more
difficult. A manager may understand the problem and the alternatives, but has no guarantee
how each solution will work. Risk is a fairly common decision condition for managers.
When new and unfamiliar problems arise, nonprogrammed decisions are specifically tailored
to the situations at hand. The information requirements for defining and resolving nonroutine
problems are typically high. Although computer support may assist in information
processing, the decision will most likely involve human judgment. Most problems faced by
higherlevel managers demand nonprogrammed decisions. This fact explains why the
demands on a manager's conceptual skills increase as he or she moves into higher levels of
managerial responsibility.
A crisis problem is an unexpected problem that can lead to disaster if it's not resolved quickly
and appropriately. No organization can avoid crises, and the public is well aware of the
immensity of corporate crises in the modern world. The Chernobyl nuclear plant explosion in
the former Soviet Union and the Exxon Valdez spill of years past are a couple of sensational
examples. Managers in more progressive organizations now anticipate that crises,
unfortunately, will occur. These managers are installing earlywarning crisis information
systems and developing crisis management plans to deal with these situations in the best
possible ways.

Uncertainty:
When information is so poor that managers can't even assign probabilities to the likely
outcomes of alternatives, the manager is making a decision in an uncertain environment. This
condition is the most difficult for a manager. Decision making under conditions of
uncertainty is like being a pioneer entering unexplored territory. Uncertainty forces managers
to rely heavily on creativity in solving problems: It requires unique and often totally
innovative alternatives to existing processes. Groups are frequently used for problem solving
in such situations. In all cases, the responses to uncertainty depend greatly on intuition,
educated guesses, and hunches all of which leave considerable room for error.
These unstructured problems involve ambiguities and information deficiencies and often
occur as new or unexpected situations. These problems are most often unanticipated and are
addressed reactively as they occur. Unstructured problems require novel solutions. Proactive
managers are sometimes able to get a jump on unstructured problems by realizing that a
situation is susceptible to problems and then making contingency plans. For example, at the
Vanguard Group, executives are tireless in their preparations for a variety of events that could
disrupt their mutual fund business. Their biggest fear is an investor panic that overloads their
customer service system during a major plunge in the bond or stock markets. In anticipation
of this occurrence, the firm has trained accountants, lawyers, and fund managers to staff the
telephones if needed.
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Decision making styles


Generally people differ in their approach to making decisions, we can term this their decision
making style. "One perspective of decision making styles proposes that people differ along
two dimensions in the way they approach decision making. The first is an individual's way of
thinking. Some people tend to be rational and logical in the way they think or process
information. A rational type looks at information in order and makes sure it's logical and
consistent before making a decision. Others tend to be creative and intuitive. Intuitive types
do not have to process information in a certain order but are comfortable looking at it as a
whole. Decision-making Styles
The other dimension describes an individual's tolerance for ambiguity. Again, some people
have a low tolerance for ambiguity. These types must have consistency and order in the way
they structure information so that ambiguity is minimized. On the other hand, some people
can tolerate high levels of ambiguity and are able to process many thoughts at the same time.
When we diagram these two dimensions, four decision-making styles are evident: directive,
analytic, conceptual and behavioral."

Directive: The group leader solves the problem, using the information he possesses.
He/she does not consult with anyone else nor seek information in any form. This style
assumes that the leader has sufficient information to examine all the relevant options
and make an effective decision, but that is rarely the case.
Analytical: When the leader does not possess sufficient information to make an
effective decision, they will need to obtain information or skill from others. They may
not tell them what the problem is; normally, they simply asks for information. The
leader then evaluates the information and makes the decision.
Conceptual: The leader explains the situation to the group or individuals whom he
provides with relevant information, and together they generate and evaluate many
possible solutions. This style tends to be have a long-term perspective and, as a result,
will be more creative and expansive in their approach entailing a higher level of risk
for the long-term benefit of the organization.
Behavioral: The leader explains the situation to the group or individuals and provides
the relevant information. Together they attempt to reconcile differences and negotiate
a solution that is acceptable to all parties. The leader may consult with others before
the meeting in order to prepare his case and generate alternative decisions that are
acceptable to them.

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Planning
Introduction:

"Planning bridges the gap from where we are to where we want to go. It makes it
possible for things to occur which would not otherwise happen"
Planning is an activity that is basically a process: a process of human thought, and action
based upon that thought: nothing more or less than this... (Chadwick :184).
Planning is simply another of our many processes for converting history into current
activity... (Forrester 1975: 167)
Planning involves the creation and maintenance of a plan. As such, planning is a fundamental
property of intelligent behavior. This thought process is essential to the creation and
refinement of a plan, or integration of it with other plans; that is, it combines forecasting of
developments with the preparation of scenarios of how to react to them.
An important, albeit often ignored aspect of planning, is the relationship it holds with
forecasting. Forecasting can be described as predicting what the future will look like, whereas
planning predicts what the future should look like. The counterpart to planning is
spontaneous order.
Planning in organization:
In organizations, planning is a management process, concerned with defining goals for
company's future direction and determining on the missions and resources to achieve those
target. To meet the goals, managers may develop plans such as a business plan or a marketing
plan. Planning always has a purpose. The purpose may be achievement of certain goals or
targets.

Main characteristics of planning in organizations are:


Planning increases the efficiency of an organization.
It reduces the risks involved in modern business activities.
It facilitates proper coordination within an organization.
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It aids in organizing all available resources.


It gives right direction to the organization.
It is important to maintain a good control.
It helps to achieve objectives of the organization.
It motivates the personnel of an organization.
It encourages managers' creativity and innovation.
It also helps in decision making.

The planning helps to achieve these goals or target by using the available time and resources.
The concept of planning is to identify what the organization wants to do by using the four
questions which are "where are we today in terms of our business or strategy planning?
Where are we going? Where do we want to go? How are we going to get there?..."
Planning in public policy:
Public policy planning includes environmental, land use, regional, urban and spatial planning.
In many countries, the operation of a town and country planning system is often referred to as
"planning" and the professionals which operate the system are known as "planners".
It is a conscious as well as sub-conscious activity. It is "an anticipatory decision making
process" that helps in coping with complexities. It is deciding future course of action from
amongst alternatives. It is a process that involves making and evaluating each set of
interrelated decisions. It is selection of missions, objectives and "translation of knowledge
into action." A planned performance brings better results compared to an unplanned one. A
manager's job is planning, monitoring and controlling. Planning and goal setting are
important traits of an organization. It is done at all levels of the organization. Planning
includes the plan, the thought process, action, and implementation. Planning gives more
power over the future. Planning is deciding in advance what to do, how to do it, when to do
it, and who should do it. This bridges the gap from where the organization is to where it
wants to be. The planning function involves establishing goals and arranging them in logical
order.

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TYPES OF PLANS
There are many types of plans. Like

Mission or Purposes
Objectives or Goals
Strategies
Policies
Procedures
Rules
Programs
Budgets

Mission or Purpose:
The basic purpose or function or tasks of an enterprise or agency or any part of it
The mission statement should guide the actions of the organization, spell out its overall goal,
provide a sense of direction, and guide decision-making. It provides "the framework or
context within which the company's strategies are formulated
For example; some purposes are as under;

The production and distribution of good


and services
To earn profts
Interpretation of laws and their application
Teaching, research and providing services
to the community
To serve humanity in general or any
afected part of society
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Business
Court
University
Social
Service

Objectives or Goals:
The end towards which the activity is aimed.
Strategy:
Came out from the military use. It may be defined as: The determination of the basic long
term objectives of an enterprise and the adoption of courses of action and allocation of
resources necessary to achieve these goals
Policies:
General Statements or understandings that guide or channelize thinking in decision making
Procedures:
Plans that establish a required method of handling future activities
Procedures may or may not cut across the boundaries of different departments.These may
also include the activities of third party contractors
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Rules:
Rules spell out specific required actions or non actions, allowing no discretion.
Programs:
Programs are a complex of goals, policies, procedures, rules, task assignments, steps to be
taken, resources to be employed and other elements necessary to carry out a given course of
action; supported by budgets
or
A program is a planned sequence and combination of activities designed to achieve specified
goals within set policies. Programs normally involve equipment materials money,personnel
and time
Budget:
Budget is a statement of expected results expressed in numerical termsIt includes the
numerical statement in terms of expected cash flow, expenses and revenues, capital outlays or
labor or machine-hour utilization.

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Steps in planning
There are eight steps in planning. In order to make a successful plan managers should
follow these steps respectively.

1. Being Aware of Opportunities:


Its a preliminary step and emphasizes on being aware of the external environment
before setting any objectives.
It is recommended that a proper SWOT analysis of the given situation to be done
for the company/ department
a realistic diagnosis of the situation would lead to setting realistic objectives

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2. Establishing Objectives:
The objectives are set first for the enterprise and then for each sub-unit.
The goals are made long term and then broken down in details to short term goals
Objectives specify the end points for which the sequence of activities is being
carried out
3. Developing Premises:
Premises: Premises are assumptions about the environment in which the plan is to
be carried out
Principle of Planning Premises: The more thoroughly individuals charged with
planning understanding and agree to utilize consistent planning premises, the
more coordinated enterprise planning would be.
Forecasting is a major part of premising, it includes:

What kinds of markets will be there


What volume of sales
What prices
What products
What technical developments
Costs, wage rates, tax rates and policies
What new plants?
Political or social environment
Long terms trends etc

4. Determining Alternative courses:


It is important to search for and examine alternative courses of action, especially those
not immediately apparent
5. Evaluating Alternative courses:
The alternatives are evaluated in the light of premises and goals, in terms of the
profits, timelines, risks, uncertainty etc
6. Selecting a Course:
This is the point of decision making. Evaluation often leads to more than one better/
advisable courses. Some times one best course is selected and one is kept for
contingency (mostly in production and security departments)
Some times two courses are adapted simultaneously

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7.

Formulating derivative plans:

8.

Derivative plans are almost invariably required to support the basic plan.
Derivative plans are the sub plans or secondary plans which help in the achievement
of main plan.
Secondary plans will flow from the basic plan. These are meant to support and
expediate the achievement of basic plans.
These detail plans include policies, procedures, rules, programmes, budgets,
schedules, etc. For example, if profit maximization is the main aim of the enterprise,
derivative plans will include sales maximization, production maximization, and cost
minimization.
Derivative plans indicate time schedule and sequence of accomplishing various
tasks.

Quantifying plans by budgeting:


The overall budget of an enterprise represents the sum total of income and expenses,
with resultant profit or surplus and the budgets of expenses, capital investment etc.
Plan implementation critically depend on budget.

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OBJECTIVES
Objectives are the ends towards which the organizational and individual activities are
directed.
According to George R. Terry, "A managerial objective is the goal which prescribes definite
scope and suggests the efforts of a manager."
According to Heinz Weihrich and Harold Koontz defined objectives of management
as, A systematic manner and that is consciously directed toward that effective and efficient
achievement of organizational and individual objectives.
Objective serves as guidelines or landmarks or road lines for action and efforts to achieve
managerial goal. Well defined objective steers an organization to success. The objectives are
required to be Verifiable so as to determine the contribution of every manager towards
those may be measured and verified.
Corporate objectives:
Corporate objectives are those that relate to the business as a whole. They are usually set
by the top management of the business and they provide the focus for setting more detailed
objectives for the main functional activities of the business.
Corporate objectives tend to focus on the desired performance and results of the business. It
is important that corporate objectives cover a range of key areas where the business wants to
achieve results rather than focusing on a single objective.
Peter Drucker suggested that corporate objectives should cover eight key areas:
Area

Examples

Market standing

Market share, customer satisfaction, product range

Innovation

New products, better processes, using technology

Productivity

Optimum use of resources, focus on core activities

Physical&financial
resources

Factories, business locations, finance, supplies

Profitability

Level of profit, rates of return on investment

Management

Management structure; promotion & development

Employees

Organisational structure; employee relations


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Public responsibility

Compliance with laws; social and ethical behaviour

Functional objectives:
A well-established business will divide its activities into several business functions. These
traditionally include areas such as:

Finance & administration

Marketing & sales

Production & operations

Human resource management

Whilst each of these functional areas requires specialist expertise, their activities are not
carried out in isolation from the rest of the business. It is vital in your studies to consider the
ways in which the functional activities are connected to each other.
However, it is common for each functional area to be set its own objectives, which should be
consistent with the higher-level corporate objectives.
So, functional objectives are:
Set for each major business function and are designed to ensure that the corporate
objectives are achieved
Consider some example objectives for the marketing function. Examples of functional
marketing objectives might include:

We aim to build customer database of at least 250,000 households within the next 12
months

We aim to achieve a market share of 10%

We aim to achieve 75% customer awareness of our brand in our target markets

SMART objectives:
Many business textbooks suggest that both corporate and functional objectives need to
conform to a set of criteria referred to as an acronym SMART.

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The SMART criteria are summarised below:


Specific

The objective should state exactly what is to be achieved.

Measurable

An objective should be capable of measurement so that it is possible to


determine whether (or how far) it has been achieved

Achievable

The objective should be realistic given the circumstances in which it is set


and the resources available to the business.

Relevant

Objectives should be relevant to the people responsible for achieving them

Time Bound

Objectives should be set with a time-frame in mind. These deadlines also


need to be realistic

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Nature of the objective

Hierarchy of objectives:
The objectives form a hierarchy, ranging from the broad aim to specific
individual objectives
The topmost and the most important objective is the purpose or mission
The purpose or mission is to get translated in overall objectives
And then there are more specific objectives or the Key result areas; in
which performance is essential for the success of the enterprise
And then there are more specific objectives or the Key result areas; in
which performance is essential for the success of the enterprise
The key result areas may be;
Market standing

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Innovation
Productivity
Physical and financial resources
Profitability
Manager performance and development
Worker performance and attitude
Service
Quality

Setting Objectives and the organizational hierarchy:


Managers at Different levels are concerned with different kinds of
objectives
Board of Directors and Top level managers
Determine the purpose and the key result areas
Middle level managers
VP or Director of department etc are involved in setting of key
result area objectives, division objectives and departmental
objectives
Lower level managers
They set the objectives of the department and units as well as of
their subordinates
Managers at each level set their personal objectives as well
Top-down approach: Objectives are management driven
Bottom-Up approach: Objectives must be set by the sub ordinates, which will
keep them committed to and motivated towards the objectives.

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Multiplicity of Objectives:
Managers may get many objectives at the same time
It is wise to set the priority levels to all the objectives
The number of objectives assigned to a manager depends on how much
would be performed by himself and how much would he be delegating to
the subordinates and then would supervise and control
HOW TO SET OBJECTIVES:
The objectives must be specific, measurable, attainable, realistic and timed
Objectives must be challenging and priorities must be assigned to each of
them
Should also be communicated and stated very clearly

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Objectives should promote personal and professional growth and


development

MANAGEMENT BY OBJECTIVES:
A comprehensive managerial system that integrates many key managerial
activities in a systematic manner and is consciously directed toward the effective
and efficient achievement of organizational and individual objectives.
Management by Objectives (MBO) is a process in which a manager and an
employee agree upon a set of specific performance goals, or objectives, and
jointly develop a plan for reaching them. The objectives must be clear and
achievable, and the plan must include a time frame and evaluation criteria. For
example, a salesperson might set a goal of increasing customer orders by 15
percent in dollar terms over the course of a year.
MBO is primarily used as a tool for strategic planning, employee motivation, and
performance enhancement. It is intended to improve communication between
employees and management, increase employee understanding of company goals,
focus employee efforts upon organizational objectives, and provide a concrete link
between pay and performance. An important factor in an MBO system is its
emphasis on the results achieved by employees rather than the activities
performed in their jobs.

BENEFITS:
People feel motivated when clear goals are effectively communicated to them
Improvement of managing through results-oriented planning
Clarification of organizational roles and structures as well as delegation of
authority according to the results expected by the people occupying the roles
Encouragement of commitment to personal and organizational goals
Development of effective controls that measure results and lead to corrective
actions.
FAILURES OF MBO:
Failure to understand the philosophy of MBO by the managers or teams.
The benefit it provides to the teams also needs to be clearly
explained
Its philosophy is built on the concepts of self control and self
direction
Failure to give guidelines to goal setters is another problem
Managers need to know the enterprise goals, company policies and
planning premises
The verifiable goals should also be flexible
The goals should be attainable and no unethical means should be
adopted to achieve them
Unethical activities should be punished
Emphasis of short-run goals on long-run goals
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In some areas, quantitative goals could not be set, but their importance could
also not be negated for eg company image etc.

Chapter 4:
Analysis

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Planning practices of Square group:


At present, SPL had 20 (twenty) functional departments for its operation. Among the twenty
departments, five departments are considered as key functional departments.

Product Management Department (PMD)


PMD is the core and centralized department for managing the total marketing effort for the
company. Basically PMD performs the all planning, implementation of plans as part of marketing
management functions. The two key functions of PMD are as follows:
1. Introduction of new product into the market
2. Manage the existing portfolio to achieve the marketing objectives.
To this end PMD undertakes all relevant activities including the following:
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1. Preparation of Marketing Plan


2. Designing and development of promotional materials
3. Promotional communication to physicians and chemists
4. Training of field forces
5. Analyzing performance of different products
6. Evaluation of new business proposals
7. Feasibility study of new products
8. Management of regulatory affairs with Drugs Administration
9. Monitoring of production and raw material status of products
10. Preparation of printed promotional material (literature/pad/brochure/show card etc.)
11. Replying to queries from the doctor as well as the field-forces concerning the brands
12. Giving product training to trainees MPO s
13. Traveling to the factory for necessary coordination work concerning the brands
14. All relevant coordination works with supplier/factory and procurement department concerning
machinery and raw materials that will be used to manufacture the concerned brands
15. Undertake all relevant activities for new product launching
Sales Department
The main functions of sales department are narrated below:
1. Pay regular visit to the doctors, show the benefits of new existing products with the help of
promotional tools
2. Monitor the competitors activities
3. Handles initial product queries from doctors and product complain from the market
4. Receive sales order from the retailers /drug stores
5. Coordination among different markets
6. Market rearrangement
7. Handling different problems of field forces
Distribution Department
1. Ensure smooth distribution of products to all over the country
2. Collection of payments from the customers
3. Performs functions as the representative of SPL at the depot level
4. Maintenance of vehicles and depots

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Market Research and Planning Cell


1. Performing market survey on the Bangladesh Pharmaceutical Market
Regular prescription share analysis and report generation for SPL market share analysis
3. Performing different market research work on different issues
4. Provide all kinds of support to Field Colleagues in effective planning in the market level
Medical Services Department (MSD)
The main functions of MSD are as follows:
1. Arranging clinical meeting with the physicians on different products
2. Provide answers to different queries of the physicians through mail or telephone
3. Arranging education programs for the rural medical practitioners
4. Publishing of medical journals
5. Arranging of special promotional campaign of different products

Best Practices in Strategic Planning


Squares strategic plan is specified to its needs, their research and experience has determined
that organizations that follow best practices in strategic planning have a greater probability
of achieving their objectives. To see how their organization stacks-up against best practices,
consider the following statements.
Best Practice Statement
1. As part of their strategy development process they review the key trends and issues that
are going on in their sector and draw potential implications.
2. They understand the governments (municipal, provincial & federal, as appropriate)
position and policy with regards to any regulatory issues that may impact their
organization.
3. They discuss and understand the implications of changes in our external environment
upon their organization.
4. They have identified our key external stakeholders and incorporated their perspective
into the strategy development process.
5. They have reviewed and either confirmed and / or amended their organizations mission,

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vision and values.


6. They understand and agree on the critical issues facing our organization and the
barriers to diminishing them.
7. They understand the organizations internal strengths and opportunities for
improvement.
8. They understand the external opportunities and threats and the implications upon their
organizations future direction.
9. They have determined a few broad areas that if we focus our efforts, will have a
meaningfully positive impact upon the future of their organization.
10. They have measures of success in place so that they can monitor our performance
during the period of their strategic plan.
11. Their strategic plan has a specific review date.
12. They have established an action list that clearly outlines the connection between the
strategic and operational plan and they have an individual responsible for each action
item to ensure it will be completed within the designated timeframe.
13. The strategic plan is realistic (although challenging) given the resources and
capabilities of the organization.
14. The focus of the strategic plan is on answering the question what should we do?
15. The focus of the operational (or tactical) plan is on answering the question how will
we do it?
16. They have a process in place for monitoring our strategic plan and ensuring that it
remains relevant.
17. They understand the implications of their strategy upon their organizations structure,
people and processes.
18. Key stakeholders have been provided with sufficient time to engage in meaningful
face-to-face discussion regarding the organizations strategic direction.
19. The strategic plan has the commitment of the organizations key stakeholders.
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20. The strategic plan is a short, concise document that outlines the decisions the organization
has made (supporting materials about process, surveys, etc. are included in the appendix).
Using these best practices can have a positive impact upon their organizations future.
However, for those of us who may not consider it appropriate to adopt all these best
practices for strategic planning at this time, they have found that they can still benefit by
having the Board and Executive Director use these statements as a framework for discussion.
The discussion should focus on understanding why the organization should or should not
include each of these best practices in their planning.
Square conduct workforce planning in a unique way. Therefore, identifying best practice
elements of workforce planning across organizations specifically, the private and public
sector was selected as the approach for evaluating the merits of workforce planning for their
work field. The best practices organized into three broad components described in Table 1
below.

Each of these components and corresponding elements of best practice workforce planning
will be addressed through different analysis approaches. In identifying comparative best
practices for evaluating the merits of workforce planning for the field, organizations were
surveyed from a variety of industry and government sectors and chosen based on reputation
within the field and established workforce planning approaches. The organization exhibit
components of good workforce planning and include protocols for addressing the workforce.
The evaluation of the Process component includes in-depth analysis of each step of the
workforce planning process through comparison of two different workforce planning
methodologies. In both the public and private sectors, workforce planning has three
commonly accepted process elements model, data, and analytics. Together, these elements
allow an organization to better understand the state of its workforce and address needs to
properly plan for its workforce. Before examining these elements, it is important to
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understand the general workforce planning process. The workforce planning process is
commonly applied as a four-step activity. The generally accepted steps of the four-step
workforce planning process are:
Step One: The process begins with a thorough inventory of the organizations supply, or in
other words, the current workforce, considering the skills, characteristics, positions, and other
pertinent information specific to the organization. This inventory serves as a baseline for the
current state of the organizations workforce.
Step Two: A demand and supply data analysis is then conducted. A supply data analysis
looks at the positions and skills sets of current workforce to determine who is doing the
actual work, whereas a demand data analysis examines an organizations goals and strategic
plans and determines what the workload is for the current workforce. Depending on the
organizations need, it may be easier for one data analysis to be conducted prior to the
other.however, both analyses are necessary for an effective workforce planning process.
Step Three: At this point an organization analyzes both sets of data to identify gaps in
current supply and expected demand. A workforce planning gap analysis will observe what
actions need to be taken for an organizations current workforce to reach the organizations
future workload needs.
Step Four: Once the analysis is completed, the organization will create an implementation
plan detailing the steps that need to be taken to eliminate or mitigate any gaps in the
workforce.
These steps will address an organizations needs to properly plan for its workforce.
Again in order to run the organization properly they set several goals. Like

Set individual employees goal: Set according to job description defined for each
employee. Moreover, task goal is defined and revised monthly & quarterly. For
example, sales target of sales force is set & revised each month considering present &
past sales trend and market potentiality as a whole.
Departmental goal: Departmental goal is set considering functional requirements of
the department. For example, goal of sales department is determined on several key
performance indicators, e.g., sales growth, sales achievement & market share. This is
also set monthly, quarterly and yearly.

Square manages multiple goals. Multiple goals are interlinked usually so that attainment of
one goal assists in achievement of another one. Different strategic planning is taken for
different goal. Regular follow-up and monitoring of extent of goal achievement is done so
that we can go for alternative planning to attain this.

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Planning procedures of Square:


Responsible employee raise the planning issue-Other relevant employees sit for discussion or
meeting-communication and transformation of information happen-a primary plan is set after
discussion-resource allocation is considered-persons are determined to take action and to be
accountable-possible limitations are marked and planning made in a way to overcome thosethorough planning is submitted to management with alternative planning-the plan is approved
by the signatory bodies.

Considered factors in the time of planning:


Objectives and its nature are the aspects. A clear path way to reach the objectives is set
primarily with contingent planning. The resource required is also considered. The limitations
are also taken into account to diminish as much as possible. Finally, the controlling and
follow-up aspects are also considered. If the planning is expected to give good outcome, its
retained or management goes for other alternatives.
Employees leave grant plan:
A leave format is available in SAP; ERP used by Square. An employee seeking for leave is to
note how many leave s/he has taken in current year and the categories of leave, i.e., casual,
sick leave or annual leave. If leaves are available and the reason for his seeking leave is
justified, s/he is approved for leave. None can take casual leave for consecutive three days.
Medical leave is allowed for as long as required. Annual leave is also given with a bonus.

Formulate supporting plan:


They think that Supporting or contingent planning is always effective in current world as any
circumstance or issue can alter or affect the current planning. So they maintain supporting
plans.

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Motivating strategy:
Financial- Salary, performance bonus, festival bonus, provident fund, gratuity, daily
allowance, employee participation fund, employee provident fund, force leave bonus, free
lunch, free transport, foreign tour reward with monetary support, etc.
Non-Financial- Working in friendly environment, training, scope of learning, weight of jobs
assigned, leadership style of leaders, available leave, office time, inspiration and appreciation
from the seniors, appreciation of creativity and freedom of responsibility
Determination of budget:
The budget always determines costing growth over last year. If planning is supposed to be
highly fruitful, costing growth is set at high and vice versa.
MBO practice:
Management by Objectives is highly appreciated in Square. Participation of relevant
personnel is ensured and their input is highly inspired and considered. Mostly, the
accomplishers plan for themselves and target is considerably set as per their ability and
expectations.

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Decision making practice of square group


Meetings are key forums to make decisions, but they often run into two predictable obstacles.
First, they dont dedicate enough time to the right issues. For example, the group may try to
cover operational performance and strategic decisions in the same session. That never works.
The two tasks require different mindsets: Operating reviews necessarily focus on holding
peoples nose to the grindstone, while strategy discussions depend on raising peoples eyes to
the horizon. Once meeting attendees begin discussing either one of these topics, they focus
their attention on that and give the other short shrift.
A second error: trying to discuss facts, alternatives and the decision all in the same meeting.
The pharmaceutical company made a point of doing the precise opposite. One session
decided whether the attendees had all the facts they needed and were considering the right set
of options. A second session then chose among the available options (based on predetermined
and agreed-upon criteria) and formalized the commitment through plans for execution.
Though it sounds like a lot of trouble, separating the two kinds of meetings makes for a faster
process because it eliminates much rework.
Establish clear guidelines for escalation: They sometimes escalate its decisions to a higher
levelfor instance, when lower-level managers find themselves locked in a major
disagreement. Unless there are specific guidelines for when escalation is appropriate,
however, too many decisions may wind up on the desks of busy senior executives, who dont
have time to give them the attention they deserve.
A typical set of guidelines might specify (a) when escalation is appropriate; (b) how often
escalation is expected to happen; and (c) what the appropriate path is. they find it helpful to
track the number of times major decisions are kicked upstairs and to brainstorm ways to
manage the number down
Use common tools and templates. they use standard tools and templates to structure
decisions, rather than reinventing the wheel each time. For long-term strategic decisions,
planning templates can assure rigorous comparisons of opportunities across disparate parts of
the business. For everyday decisions such as pricing, templates can assure that companies
gather a standard set of facts and apply common analytic approaches. Using such templates
facilitates data gathering and frees up peoples mental energy to focus on assessing the
information and making the right decisions.

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Good decision processes are as essential to an organization as good production processes.


Enablers help employees learn the necessary skills and behaviors, and they reinforce those
behaviors every day. The result is better, quicker decisions followed by effective execution.

Decision makers:
Both mid-level and upper level managers. The young managers mostly contribute to
important decisions.
Rational decision:
They think that Rational decision is always important. Emotional decision hardly brings
revenue and mostly gives negative impact. Rational decision may not bring substantial
revenue but hinders negative outcomes.
Quantitative and Qualitative factors:
Quantitative: budget, time, # of personnel deployment.
Qualitative : nature of objective, communication, availability of informational resources,
presence of relevant persons who influence in rational decision making, skill of the
accomplishers etc.

Basic policy of decisions:


Company and departmental objectives are complied. The decision should be congruent with
set departmental objectives. Decision should not cause harm to the stakeholders but should be
aggressive toward competitor. The decision must comply with ISO and other business
policies.
Marginal analysis:
In order to select the best alternatives, they go for marginal analysis because it help them to
select the one that will provide maximum profit though their main focus is increasing profit
amount. When they think about a new product decisions they do marginal analysis to select
the right process that best suits their main goal.
Resources Utilization:
Two types of resources are always rolled and deployed: informational and human resources.
Organizational resources utilization effectiveness depends upon effective allocation of those
resources. A sales analyst can utilize accounting information if s/he is trained on the
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correlation between accounting and sales data. Again, the IT department has nothing to do
with accounting information. Square utilizes its resources effectively and efficiently.
Cost-effectiveness:
Wherever cost exists, its effectiveness analysis exists. Effectiveness judged on return
expected out of the costing. Petty costing is not analyzed but any sort of big investment of
expenses incurred through well analysis of expected return.

Alternative selection method:


Relevancy with the objective. If any alternative is expected to diminish some limitations of
another one, it is considered.
Motivate employees:
They always encourage the workers to show their creativity. They tell every worker to have
ownership feeling which highly inspire the workers for creativity and innovations. A far space
is kept by management so that employees can give their own ideas. They have a folder in a
common server where employees can post their idea for improvement.
For accomplishing their goals like implement a new product first of all the managers take
decisions on the basis of market demand. They find out several product ideas and then by
analyzing these ideas they select the one that highly accepted by them and the market.
Leadership style and organizational culture always impact on the decision making process.
By nature Square is not bureaucratic, so decisions are ever fast and superb. Leaders in Square
are mostly carry defensive style. So, out decision becomes modest mostly and little
aggressive.

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Chapter 5:
Findings

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Benefits of the Analysis


As a student of business administration Department, I am highly benefited by doing this
analysis.

We gain practical knowledge of office visiting.


We understood our lesson very deeply.
It increased our technical knowledge.
It is very helpful for our professional life.
It has a great impact on our career.
It improves our theoretical knowledge.
We learnt how a company makes plans.
We learnt how a company takes decisions.
We learnt several planning and decision making concept.
We learnt several planning and decision making techniques.
Eventually we learnt that haw a manager performs his tasks.

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Chapter 6:
Conclusion

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RECOMMENDATION

They should recruit key personnel with more human interaction skills.
They should improve their decision making policy.
They should increase decentralization and centralization in decision making
respectively.
Their planning process should be well developed.
They should think about more factors while planning,
They should go for better management system.
They should provide more importance on their goal achievement.
They should provide better training to their managers.
They should set their objectives very carefully.
Highly experienced managers should take all the critical decisions.
Steps should be taken to create awareness and drive out the wrong ideas about their
products among rural people.
Square pharmaceuticals LTD. Need to bring more product like new dose including
tablet, capsule, syrup, suspensions etc in its product line.
They should focus on global market expansion.

CONCLUSION
At the end, after analyzing the term paper, we can proclaim that Square pharmaceutical LTD
is one of the best firm in our country. It makes many pharmaceutical items and doses very
cheap for us. Despite some errors its management system is very strong. Their managers and
key personnel are very much conscious about their responsibility. They try their best to attain
the goal. In addition they practices best policy for their planning and decision making. They
have good strategic plans to do their job.

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REFERENCES:
1. Md. Mozahidul Islam
Senior Executive, Business Development.
Sales Department
SQUARE Pharmaceuticals LTD.
2. Management: A global and entrepreneurial Perspective By H.Weihrich, Mark V.
Cannice, H.Koontz.
3. www.wikipedia.com
4. www.boundless.com
5. www.slideshare.net
6. www.tutorialspoint.com
7. www.zeepedia.com
8. www.inc.com
9. managementinnovations.wordpress.com
10. www.cliffsnotes.com
11. www.csupomona.edu

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