KNOWLEDGE

MANAGEMENT

BY
K.SOMESWARA CHARY

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S. NO CONTENTS PAGE-NO

1 Introduction of HRM 3-8

2 About the study 9 - 14

 Research Objective
 Research Methodology
 Need for the study

3 Pharmaceutical industry 15 - 17

4 Indian Pharmaceutical industry 18

5 Company profile 19 - 50

6 Knowledge Management – An Overview 51 - 69

 Why Knowledge Management

 Roots of Knowledge Management
 Definitions of Knowledge Management
 Categories of Knowledge Management
 Principles of Knowledge Management
 Knowledge Management Process
 Knowledge Development Cycle
 Obstacles to KM implementation

7 Analysis & Interpretation 70 - 90

Data Analysis

Observations

8 Conclusions & Suggestions 91 - 94

9 Appendix 95 - 98

 Questionnaire for Employees

10 Bibliography 99

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 Introduction of
HUMANRESURCE MANAGEMENT

HUMAN RESOURCE MANAGEMENT

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A wonderful creation of man brought significant and paradigm shifts in our day-
to/day life. The people make or mar the organization. According to L F Urwick
“Business houses are made or broken in the long run not by markets or capital, patent
or equipment by men” managing men has become a task of trauma. As it is said, by
father of psychologist Sigmund Freud that, “beats are better than some men”.
Sometimes we find such men in the organization and managing these men is a task.
Managing this task is Human Resource Management.

An organization is nothing without Human Resource. Of all the resources

manpower is the only resources, which does not depreciate with the passage of the
time. The term Human Resource is a resource like any natural resources (i.e.)
management can get and use the skills, knowledge, ability etc. Through the
development of multi-facets, skill tapping and utilizing them again and again by
developing a positive attitude among employees. From the view point of the
organization Human Resource Management is the process of efficiently getting
activities completed with and through other people.

In the process of glamorous globalization Human resource management was

heralded as “a new era of human people – oriented employment management” and
derided as a “blunt instrument to bully workers”. But the former proved a value and
this value stabilized and strengthen the Silicon Valley and Silicon Valleys of India.
Human Resource Management concerned the human side of the management of
enterprises and employees relations with their firm.

The employees of a company i.e. its Human Resources are understood in and
used in such a way that the employer obtains the greatest possible benefit from their
abilities and the employees obtain both material and psychological rewards from their
work. Human Resource Management sees employees as assets to be used strategically
through their close involvement with the organization and by raising employee’s
levels of commitment to the aims and requirements of the firm’s. Now a day’s
employees are encouraged to welcome change, to be innovative, quality conscious
and flexible.

HRM AS CENTRAL SUBSTSTEM IN AN ORGANIZATION

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 As a central subsystem, HRM interacts closely and continuously with all other
subsystem of an organization. The quality of people in all subsystem depends largely
upon the policies, programmes and practices of the HRM subsystems. The quality of
Human Resource determines in turn the success of the organization.

HRM become very significant in recent decades due to the following factors:

• Growth of powerful nation wide trade union.

• Increase proportion of women in the workforce.
• Rise of professional and knowledgeable workers.
• Growing expectations of society from employers.
• Increase in the size and complexity of the organization.
• Revolution in information technology that might effect the workforce.
• Rapid technological developments like automation and computerization.
• Rapidly changing jobs and skills requiring long term manpower planning.
• Widening scope of legislation designed to protect the interests of the
workforce.

HRM – The new assumptions

• Goal orientation (relationship orientation)

• Participation and informed choice (control from top)
• People are social capital capable of development (people are variable cost)
• Seeks power equalization for trust and collaboration (seeks power advantage
for bargaining and confrontation)
• Coincidence of interest between stakeholders can be development (self interest
dominates conflict between stakeholders)

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 • Proactive system wide intervention, with emphasis on fit linking HRM with
strategic planning and cultural change (old assumption reactive, piecemeal
intervention in response to specific problem)

Out comes to HRM

According to the Harvard Researchers, the effectiveness of the outcomes to

HRM should be evaluated under four headings:

 Commitment
 Competence
 Congruence
 Cost-effectiveness

Commitment
Concerns employee’s loyalty to the organization personal motivation and linking for
their work. The degree of employee commitment might be assessed via attitude
surveys labor turnover and absenteeism statistics and through interview with the
workers who quit their jobs.

Competence
Relates to employees skills and abilities, training requirements and potential for
higher work. These may be estimated through employee appraisal system and the
preparation of skills inventories. HRM policies should be designed to attract, retain
and motivate competent.

Congruence
Congruence means that management and workers share the same vision of the
organization goals and work together to attain them. In a well-managed organization,
employees at all levels of authority will share common perspectives about the factors
that determine its prosperity and future prospects.

Cost-effectiveness
Concerns operational efficiency. HR should be used to the best advantage and in the
most productive ways. Outputs must be maximized at the lowest input cost and the
organizational must be quick to respond to market opportunities and environmental
changes.

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Knowledge Management: An Eye Opener

The new millennium is in the midst of explosive change witnessing intense

competition amongst the domestic as well as the international players. Little wonder
then KNOWLEDGE MANAGEMENT is fast emerging as a core strategy, that
organizations worldwide are adopting to manage and leverage organizational
knowledge, for sustainable business advantage. In this world of rapid change, we have
to create new knowledge and ideas constantly. We get that by looking at what we
know, and applying it to what we do not yet know.

The changes taking place in the world economy have made knowledge
management a business necessity, at least for large multinationals that operate on a
global scale, or hope to. Managing your company’s knowledge more effectively and
exploiting it in the market place is the latest pursuit of those seeking competitive
advantage.

The organizations that are driven by knowledge are the ones that will succeed.
The combination of global reach and speed compels organizations to ask themselves,
“what do we know, who knows it, what do we not know that we should know?”

This paper describes in a nutshell, that the organizations can attain maturity in
KM only through healthy coexistence of technology, processes and people.

What is Knowledge Management?

Knowledge Management is a process that helps organizations find, select, organize,

disseminate and transfer important information and expertise necessary for activities
such as problem solving, dynamic learning, strategic planning and decision-making.

“ If money is your hope for independence, you will never have it. The only real
security a man will have in this world is a reserve of knowledge, experience and
ability”.

Henry Ford

To define knowledge management we have to pull apart the two parts of that term.

Knowledge

Knowledge is part of the hierarchy made up of data, information, knowledge and

wisdom. Data are raw facts. Information is facts with context and perspective.
Knowledge is information with guidance for action. Wisdom is understanding which
knowledge to use for what purpose.

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Management

Management is part of another hierarchy that includes supervision, management and

leadership. Supervision is dealing with individual tasks and people and works at the
operational level of an organization or subunit. Management is dealing with groups
and priorities at the tactical level. Leadership is dealing with purpose and change at
the strategic level.

Hence knowledge management is concerned with the exploitation and

development of the knowledge assets of an organization with a view to furthering the
organization’s objectives.

“No amount of sophistication is going to allay the fact that all your knowledge is
about the past and all your decisions are about the future.”
E. Wilson

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About the Study
• Research Objective

• Research Methodology

• Need for the Study

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Objectives provide the purpose of the study. They are guiding assertions and form

the basics of any study. A proper and well-defined set of the objectives is one the pre-

requisites for any project.

Objectives for this work are as follows:

To study and analyze the Knowledge Management software practised at Dr.

Reddy’s Laboratories.

To interpret stage of hierarchy of Business Intelligence of Dr. Reddy’s Lab.

according to the standard concept of Knowledge Management.

To know in which areas Knowledge Management is being implemented.

To know the obstacles/problems in implementation.

To understand the benefits of implementing Knowledge Management from the

Organization’s point.

To find out whether Dr.Reddy’s Lab includes Knowledge Management in Self-

appraisal of the organizational performance.

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RESEARCH METHODLOGY

Research design:

The research used for this study of Knowledge management is descriptive in nature.
This design is adopted to portray the attitude of the respondents regarding different
dimensions of Knowledge management.

Sample design:

The respondents were selected by random sampling. The survey was conducted for a
period of 45 days at Dr. Reddy’s Laboratories.

Sample size:

The total sample size of 50 respondents were taken, which includes all the employees
of Dr. Reddy’s Laboratories. They were interviewed personally.

Coverage:

The respondents are from

 Department: Human resource, Engineering, Finance, Quality Assurance,

Quality control, R&D, SH&E, Production, Ware House, Security &
Administration.

 Employee Level: All levels of people were considered for the survey (Senior
Managers, Assistant Managers, Head of the departments and workers).

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 METHODLOGY

Primary Data:

The primary data is collected from

Interviews:

Interviews are conducted on concerned officials in the organization. This was

done to extract the information pertaining to the study not available in the books,
records and other sources.

Questionnaire:

The term questionnaire usually refers to a self-administered process whereby

the respondent himself reads the question and records his answers without the
assistance of an interview.

The questionnaire is a standard form for recording answers may be undertaken

either by the interviewer or by the respondents, as the methods of data collection
require.

The main thrust of a questionnaire is that it is a schedule of questions. It is not

static and fixed in a wider sense. Different respondents may interpret the questions
differently, but they should reserve the basic theme and purpose of data collection.

The questionnaire of the Knowledge Management contains questions

regarding:

 Creative thinking and Idea Generation

 Team and Team Work

 Motivation

 Training and Development

 Incentive System

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Such questions help the organizations to work on establishing strong and effective
climate.
A well-structured questionnaire was developed to extract information about
the matters of relevance a primary questionnaire was developed and tested on
respondents it was revived and tested again. The Final Questionnaire is a result of
such interactions. The questionnaire was personally administered to people working
for Dr. Reddy’s Laboratories.

Secondary Data:

The secondary data is collected from

Internal sources:

To trace the origin, growth and performance of Sri Krishik Bharathi Agencies,
the respective annual reports and internal circulars were utilized. Even the official
records of human resource department and various printed materials were referred to
extract the information.

External sources:

The secondary data is also collected from different sources.

o PerfECT: ‘Performance Enhancement and coaching tool’.

o Magazines like Elixir, Tejas, Aspire and Fertilizers News.

Observation:

For having a broader and accurate idea about the implementation of

Knowledge-based activities in the organization, observation method has been used.
By observing the employees who participated in the training activities and other
activities we could analyze and see the impact and resourcefulness of Knowledge
management in the organization.

Data Analysis and Interpretation:

Data is analyzed and interpreted using statistical methods like pie diagrams

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 Pharmaceutica
l
Industry

Introduction to Pharmaceutical Industry

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PHARMACEUTICALS:

Pharmaceuticals are medically effective chemicals, which are converted to

dosage forms suitable for patients to imbibe. In its chemical form, pharmaceuticals are
called bulk drugs and the final dosage forms are known as formulations.

Usage of pharmaceuticals is governed by the underlying medical science. The

four primary medical sciences are as under:

 Allopathy or modern medicine has gained global popularity.

 Ayurvedic, an ancient Indian science, mainly used herbal remedies.

 Unani, having Chinese origin, is prevalent in South East Asia.

 Homeopathy, founded by a German physician, was fairly popular in the early

19th century.

World – over, the pharmaceuticals industry is focused on allopathy, the most

modern medical science. Other modes of medical treatment such as homeopathy,
ayurvedic and Unani are more Prevalent in third world countries.

Bulk Drugs

Bulk drugs are medically effective chemicals. They are derived from 4 types
of intermediates (raw materials), namely

 Plant derivatives (herbal products)

 Animal derivatives e.g. insulin extracted from bovine pancreas

 Synthetic chemicals

 Biogenetic (human) derivatives e.g. Human insulin

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 Bulk drug discovery requires intensive and expensive research. So new drugs
are patented one by the innovator to ensure commercial gains on his R & D
investment. When a drug goes off patent it becomes generic. Bulk drugs can be
broadly categorized as

• Under patent

• Generic or off patent.

A patent provides exclusivity of manufacturing/ licensing to the discovery i.e. patent

holder for a stipulated time period.

Formulations

Doctors post-diagnose to cure a disease or disorder in the patient primarily

prescribes formulations. To prevent misuse/incorrect administration, most
formulations are disbursed by pharmacies only under medical prescription and these
are called ethical products. However, some formulations such as pain balms, health
tonics etc. can also be purchased by users directly. These are called over-the-counter
(OTC) products.

Formulations can be categorized as per the route of administration to patients,

viz.

 Oral i.e. tablets, syrup, capsules, powders etc. taken internally.

 Topical i.e. ointments, creams, liquids, aerosols that are applies on the skin.

 Parentals i.e. sterile solutions injected in an intravenous or intramuscular

fashion.

 Others such as eye-drops, pessaries, surgical dressings etc.

INDIAN PHARMACEUTICAL INDUSTRY

The Indian pharmaceutical industry today is in the front rank of India’s science based
industries with wide ranging capabilities in the complex field of drug manufacture and
technology. It ranks very high in the third world, in terms of technology, quality and
range of medicines manufactured from simple headache pills to sophisticated

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antibiotics and complex cardiac compounds, almost every type of medicines is now
made in India.

The organized sector of the pharmaceutical industry has played a key role in
promoting and sustaining development in this vital field. International companies
associated with this sector have stimulated, assisted and spread headed this dynamic
development in the past 53years and helped to put India on the pharmaceutical map of
the world. The pharmaceutical industry in India provides excellent facilities. It has
quality producers and many units are approved by regulatory and authorities in USA
and UK. It has a pool of personal with high managerial and technical competence as
also skilled work force. Its track record of development, particularly in the area of
improved cost-beneficial chemical synthesis for various drug molecules is excellent.
It provides a wide variety of bulk drugs and exports sophisticated bulk drugs.

The Indian market has some unique advantages. India a 53year old
democracy. It has been work force and English is commonly used. It has a solid legal
framework and strong financial market. Professional services are easily available.
There is already an established international industry and business community. It has
good network of world-class educational institutions and established strengths in IT.
The country is now committed to a free market economy and globalization. Above all,
it has 70million middle class market which is continuously growing.

For the first in many years the international pharmaceutical industry is finding
great opportunities in India. The process of consolidation, which has become a
generalized phenomenon in the world pharmaceutical industry, has started taking
place in India. The pharmaceutical industry, with its rich, scientific talents and
research capabilities, supported by intellectual property protection regime, is well set
to mark its place as a sunrise industry.

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 COMPANY PROFILE

Dr. Reddy’s Laboratories was founded by Dr Anji Reddy, a entrepreneur-scientist, in

1984. The DNA of the company is drawn from its founder and his vision to establish

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India’s first discovery led global pharmaceutical company. In fact, it is this spirit of
entrepreneurship that has shaped the company to become what it is today

Dr.Reddy’s laboratories are global pharmaceutical company with proven

research capabilities. Having chosen the path of discovery and innovation in health
science.

The company in vertically integrated with a presence across the

pharmaceutical value chain, producing and delivering safe, innovative and high
quality finished dosage form, active pharmaceutical ingredients and biotechnology
products, which are marketed globally.

The company conducts research in the areas of cancer, diabetes,

cardiovascular, inflammation and bacterial infection. Its drug discovery effort is
carried out at state-of-the-art research facilities in the Atlanta, USA, and in
Hyderabad, India.

Dr.Reddy’s is focused on innovation, which is the key for the transition to

being a discovery-based global pharmaceutical company. Production of bulk drug
Methyidopa (for cardiac patients) commenced at its Hyderabad plant in 1985. in 1986,
the company acquired a bulk drug company at Hyderabad, viz. Benzex Labs. This
factory was modernized and is now DRL’s unit 2(bulk). In the same year, DRL
started manufacturing formulations. USDFA approval was received in 1987 and
exports to USA commenced.

In 1993, it purchased the facilities of Krishna Alchemy in Hyderabad

upgraded it and made it unit 3.

The company’s research pipeline currently has 4molecules in clinical

development and 3molecules in pre-clinical development. It has also built significant
intellectual property and field 75patents with the USPTO 76patents with the PCT and
has been granted 40 patents by the USPTO. Dr. Reddy’s started its drug discovery
programme in 1993 and within 3years it achieved its first break through by
outlicencing an anti- diabetes molecule to Novo Nordisk inarch 1997. With this very
small but significant step, the Indian industry went through a paradigm shift in its
image, from being known as just ‘copycats’ to ‘Innovators’!

Bulk actives, branded formulations, and generic formulations are exported to

over 100 countries including US, EUROPE, RUSSIA. Dr.Reddy’s finished dosages
have an enviable track record. Some such as Nise, Omez, Enam, Stamlo, Stamlo Beta
and Ciprolet are among the top brands in India, and many have become household
names in developing countries also. Dr.Reddy’s generic formulation have also
become popular in quality conscious regulated markets such as the US and Europe.
The companies bulk drugs, such as Norflozacinl, Ciprofloxacin and Endrofloxacin,
enjoy a large customer base worldwide. Currently six of its brands are among the
ORG top 300.

Dr.Reddy’s follows the most stringent quality control procedures in its

facilities so that its products are and efficacious, and endeavors to go beyond world-
class standards of excellence.

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 The company’s system of values, in which values such as excellence and
integrity, transparency and honesty, collaboration and teamwork, are part of the
essential DNA of the company, ensure that the highest standards of quality are
maintained in all its activities to delight its customers.

Harmony and Social Responsibility are values which Dr.Reddy’s lives by. It is
an objective to make a difference to the communities, in which the company lives and
works. Being environmentally friendly and implementing sustainable environment
controls is part of the commitment.

Social initiatives are conducted through the Dr.Reddy’s Foundation for

Human and Social Development. The foundation has been successful in developing
self-sustainable social development models by forging partnerships between funding
organizations, government bodies, companies, business leaders and individuals.

Based on the nature of business each SBU (strategy business unit) is defined
as a separate entity on the lines of profit center concept.

The corporate office of Dr. Reddy’s Laboratories Ltd. is located at Ameerpet,

Hyderabad.

The SBU bulk is having six units and the units are located at

Unit 1 - Bollaram, Hyderabad

Unit 2 - Bollaram, Hyderabad
Unit 3 - Bollaram, Hyderabad
Unit 4 - Jeedimetla, Hyderabad
Unit 5 - Peddadevulapalli
Unit 6 - Pydibeemavaram.

DR.REDDY’S VISION:
To become a discovery-led global pharmaceutical company. Dr.Reddy’s will
achieve this vision by building:
Workplaces that will attract, energize and help retain the talent a available.
An organizational culture that is relentlessly focused on the speedy translation
of scientific discoveries into innovative products that makes a significant difference in
people’s lives.
A global marketing organization that understands and responds to the needs of
the customer.

DR.REDDY’S CORE PURPOSE:

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 Our Core Purpose is to help people lead healthier lives.

DR.REDDY’S MISSION:

To be the first Indian pharmaceutical company that successfully takes its

products from discovery to commercial launch globally.

Dr.REDDY’S VALUES:

Excellence: We strive for excellence in everything we think, say and do.

Quality: We are dedicated to achieving the highest levels of quality in everything we

do to delight customers, internal & external, every time.

Respect for the Individual: We uphold the self-esteem and dignity of each other by
crating an open culture conducive for expression of views and ideas irrespective of
hierarchy.

Innovation & Continuous learning: We create an environment of innovation and

learning that fosters, in each one of us, a desire to excel and willingness to
experiment.

Collaboration & teamwork: We seek opportunities to build relationships and

leverage knowledge, expertise and resources to create greater value across
functions, businesses and locations.

Harmony & Social Responsibility: We take utmost care to protect our natural
environment and serve the communities in which we live and work.

Our business practices are guided by the highest ethical standards of truth, integrity
and transparency.

Dr.Reddy’s Social Initiatives:

Genesis:

Dr.Reddy’s foundation for human and social development was founded on 19th
October 1996 out of a social responsibility of Dr.Reddy’s, a scientist and a successful
entrepreneur.

Dr.Reddy’s guarantees the core support for the foundation’s administrative

support and core staff expenses laboratories apart from a commitment for 30% of all
the program support venture funding of projects that are to be scaled up. The
approach is to identify programs that would make a significant difference to the
quality of life of a large number of people in the community and assume
responsibility for it until the program becomes self-sustaining.

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Programs of the Foundation:

The program of the foundation operate at four levels all addressing the issues
related to urban poverty and sustainable livelihoods towards self-development.

Development new, sustainable community based models and enabling its own
models of reach scale.

Supporting models of other agencies and helping these achieve scale.

Supporting programs developed in collaboration with other business groups.

These models include projects that corporate and business houses have taken up as
their social responsibility.

Core Programs:

The core programs of the foundation include:

Child and Police (CAP) project.

Livelihood Advanced Business Schools (LABS).
Small Grants Program.
Change makers club.
Micro Finance Entrepreneurs (MFE) Fellowship support program

DR.REDDY’S CULTURE:

Customer Focused and performance Driven where both external and internal
customers are accorded the highest priority and where everyone is sensitive to
commitments, time and cost and focuses on delivering innovative affordable medicine
globally.

Entrepreneurial and Innovative where genuine mistakes are tolerated, intelligent risk-
taking is encouraged and people feel a sense of empowerment.

Egalitarian and Trusting where rank and status consciousness is low; leadership walks
the talk, where credibility and trustworthiness are championed and leaders provide
access to people, resources and information.

Flexible and Adaptive where change is welcome and initiatives are implemented with
sincerity and commitment, diversity is understood and accepted mutual respect for
diversity and various ethnic cultures coexist.

DR.REDDY’S QUALITY POLICY:

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 Dr.Reddy’s laboratories is committed to provide customers products,
meetings or exceeding expectations consistently in terms of specifications, delivery,
technical support, regulatory companies and competitiveness.

Constantly improve procedures, technologies and infrastructure and

continuously better the quality of products produced.

Ensure optimum training to all personal accountable for quality related

activities.
Maintain mutually beneficial relationship with vendors, enrich the quality of
life of employees and provide lasting value to shareholders.

Safety Health Environmental Policy (SHE):

Dr.Reddy’s consider safety, health and environment protection as an integral

part of their business. Reddy’s is committed to protect the environment in which they
operate and to ensure the health and safety of their employees, contractors, visitors
and community.

Reddy’s achieve continued commitment to safety, health and environment by:

Complying with relevant legal statues.

Conducting active R&D and technology planning in new process development

to minimize the adverse impact on safety, health and environment.

Using and maintaining equipment, systems and facilities to provide a safe

work atmosphere to employees, contractors, visitors and neighboring community and
aim towards becoming an incident and injury free facilities.

Conserving resources and preventing pollution.

Continually improving safety, health and environmental aspects through

objectives, targets, management programs, audits and reviews.

Establishing emergency preparedness.

Maintaining good housekeeping in our plant premises.

Creating safety, health and environmental awareness and developing the

required level of knowledge and skills in all employees through need based training
and internal communication.

All employees are responsible for being aware about SHE needs in their areas
of work. Reddy’s expect the employees to actively participate in developing solutions
to fulfill these needs and establish a high level of SHE (safety health environment)
performance.

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Business division

Dr. Reddy's is a vertically integrated, global pharmaceutical company with proven

research capabilities and presence across the pharmaceutical value chain. We
manufacture Active Pharmaceutical Ingredients and Finished Dosage forms and
market them globally, with a focus on United States, Europe, India and Russia. In
addition, the drug discovery arm of the company conducts basic research in the areas
of diabetes, cardiovascular, inflammation and bacterial infection.

DR.REDDY’S STRATEGIC BUSINESS UNITS

Their strategic business units are:

Branded Finished Dosage.

Generic Finished Dosage.

Bulk Activities.

Custom Chemicals.

Biotechnology.

Diagnostics.

Discovery Research.

Branded Formulation:

The branded formulation business has evolved from an Indian market player to
a global organization. Starting with brand on its own formulations, it has grown
through brand and company acquisitions, a valuable product mix, distribution
strength, and therapeutic area focus to become one of the country’s largest
players.

The figures from Rs.4.7 mn is 1987 to Rs.6.057 mn in 2002. In addition

alliances and joint ventures have helped rapidly grow its international operations,
which are key to its move up the value chain, Dr.Reddy’s branded formulations are
marketed in countries across Russia, CIS, Latin America, South Asia, China and
Africa.

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Generics:

The generic business gives Dr.Reddy’s a direct presence in first world market. It has
always had expert focus and has grown aggressively on the back of a few of profitable
products, successfully clearing inspections by USFDA, MCC, and the MCA.

Its path to value has taken the high risk. High return route, with a series of
patent challenge products.

Its focus: Innovate and built both technology and commercial skills to build
capabilities for specialty products.

Bulk Activities:

The bulk actives business caters to the needs of both innovators and Generic
Formulators worldwide.
At Dr.Reddy’s they manufacture about 100 bulk activities and several key
intermediates. They have 6 bulk actives manufacturing facilities, which are CGMP,
approved and USFDA inspected.
Their expertise in organic synthesis, process development and controlled
supply chain them to provide us with high quality bulk activities at competitive prices.
They are aggressively building their product portfolio to cater to the generic and
patent challenge formulators in regulated markets, and the generic players in
emerging markets.

Custom Chemicals:

Their custom chemical service business unit caters to the following needs of
pharmaceutical companies that wish to outsource their requirements:

Contract Synthesis
Custom Synthesis
Contract Manufacturing

CCS serves as a single point contact for customers. It capable of catering of

diverse customer requirements from grams to multi=tons. The unit promises speedy
responses to enquiries, with a turn-around time of two weeks, as well as dedicated
resources in both R&D and manufacturing facilities.

CCS cutting edge lies in its experience and expertise spanning a range of
technology, talented scientific personnel, large manufacturing capacities, modern
infrastructure, speed and accuracy in response and customized and cost effective
solutions to a variety of chemistry problems

The unit is committed to efficient business interaction with customers. To this

end, they have credited a dedicated, decentralized decision-making team. The panel is
backed by decision support infrastructure and equipped with world-class software,
hardware and communication channels.

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Biotechnology:

Dr.Reddy’s biotechnology division deals with therapeutics, vaccines and

diagnostics. Molecular biology, cell culture, fermentation, downstream processing and
hybridoma technology are focus areas. Dr.Reddy’s core competency is in the
recombinant proteins technology platform. Their use of technology, multiple
expression systems (E.coli, Yeast and mammalian cells) ensure high expression levels
in yield apart from cost and market leadership.

Having identified bio-generic as a significant market area, they are in the

process of setting up bulk recombinant protein production sites and formulation
facilities that meet USFDA specifications. They have a pipeline comprising several
recombinant proteins in various phases of development for treatment of cancer,
diabetes and cardiovascular diseases.

Diagnostics:

Dr.Reddy’s Diagnostics business markets a portfolio of over 50 products

including ELISA kits covering hormones, infectious diseases and cancer markets,
enzymatic and chemical kits and pregnancy detection kits. It also markets a range of
instruments including semi auto analyzers for clinical chemistry and fully automated
Elisa Readers. Dr.Reddy’s has a world-class facility for manufacturing diagnostic
kits. The 85,000-sqft state-of-the art facility is one of the best in the country. The
diagnostics business received the ISO 9002 recognition in April 1999.

This business has marketing tie-ups with Biochem Immunosystems, Canada,

M/s Biosystems, Spain, M/S Omran, Japan and M/S Gene labs Diagnostics, Geneva.

Critical Care:

Launched in 1998, Dr.Reddy’s critical care Division (CCD) caters to specialty

segments like Oncology. It strives to create a strong base for a sustainable long-term
competitive advantage.

In a short period of three years, the division has achieved a leading position in
the Oncology segment. The accelerated growth comes from its ability to face
challenges and achieve a paradigm shift. CCD has set new standards through
innovative product presentations focused customer approach and customized patient
service.

As a responsible corporate citizen, Dr.Reddy’s recognizes the need to

contribute substantial to various social causes. Their tie up with the Cancer patients
Aid Association and involvement in awareness campaigns and patient education
programs are designed to address the same.

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FINANCIAL POSITION

DRL the private pharmaceutical company started $40,000 in cash and $120,000 in
bank loan. Today the company with revenues of Rs. 1947 crores (US $446 million) is
India’s second largest pharmaceutical company and the youngest among its peer
group.

DRL has sufficient technical infrastructure and trained manpower for

converting its core strengths into opportunities.

The following charts show the break-up of our revenues, for the fiscal 2005, by
business and by geography.

Pharmaceutical Products

Pharmaceutical products are classified into two types:

1. Bulk drugs
2. Formulation

Bulk drugs:
They are basic drugs produced in bulk to be sold subsequently processed in to
pharmaceutical preparations.

Formulation:

They are end products that are consumed by the masses. The formulation is in
the form of tablets, capsules, tonics, etc.

The basic drugs manufactured by Dr. Reddy’s laboratories Limited are

converted in to branded formulations by several other companies.

27
 All the units of Dr. Reddy’s laboratories Ltd., have the prestigious United
States Food and Drug Administration (USFDA) approval. Today the company has the
distinction of manufacturing the following bulk drugs in volumes ranging from one to
six hundred tones per annum.

They are:

 Ibuprofen
 Raniditine
 Norfloxcin
 Ciprofloxcin HCL
 Pefloxcin
 Diltiazem
 Omeprozole
 Astemizole
 Tefenadine
 Fomotidine
 Ketorolac Tromethamine
 Domperidone
 Enalapril-naleate
 Sumitriplan Succinate
 Certizine Dihydrochloride

Dr. Reddy’s laboratories Limited is the world’s second largest producer of

Ibuprofen and Rantiditine. Rantiditine transformed the company from a domestic
player in to a global player. Dr. Reddy’s Laboratories Limited also entered into
the field of formulations. Dr. Reddy’s promoted ‘Stangen’ and ‘Genesis’ to
market formulations. Today the company has capacities to manufacture wide
range of products from basic drug stage to formulations.

We, at Dr. Reddy's, bank on the strength of our products. Not only are they the logical
results of our efforts, they are also our means of achieving our end purpose of
‘helping people lead healthier lives’. Products are the only aspect of our
pharmaceutical value chain, which directly touch people’s lives.
Our discovery centric philosophy, along with our internationally ratified facilities,
enables us manufacture a range of products that are known for their quality and
efficacy. Dr. Reddy’s product portfolio spans an impressive mix of Active
Pharmaceutical Ingredients, Generics and Branded Formulations as well as Biologics.

Acquires betapharm- the fourth-largest generics company in Germany for a total

enterprise value of € 480 million.

Research and Development

Discovery Research:

28
“The trajectory of innovation is unpredictable and there is risk involved to those who
undertake this journey. It takes courage & vision to look beyond today’s vicissitudes
& find hope. But if we don’t seize the moment and challenge your capacities we will
remain pygmies in the world of gains. The future belongs not to those who merely
seek opportunity but to those who create it…”

Dr. Anji
Reddy

Dr. Reddy’s laboratories have been one of the pioneers of R&D in India. Established
in late 1980’s the research & development division has acquired the status of full-
fledged research organization, develop proprietary processors for organic &custom
made intermediates. R&D plays an active role in selection of new products &non-
infringing routes to manufacture products. It also sets the pace for development &
launch of products at right time in the right form & at right place.

With over 950 scientists working across the globe, around the clock, the
company continues its relentless march forward to discover and deliver a
breakthrough medicine to address an unmet medical need and make a difference to
people’s lives worldwide. It is also planning to open a satellite research center at
Atlanta. This center will focus specially on target-based research that will be a step
ahead in its values chain of basic research that is currently analogue based.

Dr.Reddy’s Key Milestones:

2006:

Acquires Roche's API Business at the state-of-the-art manufacturing site

in Mexico with a total investment of USD 59 million.
Announces the formation of Perlecan Pharma: India’s First Integrated Drug
Development Company.
Announces India's first major co-development and commercialization deal
for its molecule Balaglitazone (DRF 2593), with Rheoscience.
Announces a unique partnership for the commercialization of ANDAs with
ICICI Venture.

2005:

As per WTO, from the year 2005, India will grant product patent recognition
to all new chemical entities (NCEs) i.e., bulk drugs developed then onwards. The
Indian Government, decision to allow 100 percent foreign direct investment into the
drugs and pharmaceutical industry is expected to aid the growth of contract research
in the country. Technology transfer to 100 percent Indian subsidiaries of MNC is
expected only in 2005. Indian pharmaceutical interests in making a mark on the global
scene got a boost when Dr.Reddy’s licensed two of its anti-diabetic molecules to
Novo Nordisk and when Ranbaxy Licenced its Novel Drug Delivery system (NDDS)
of ciprofloxacin to Bayer. MNCs in India faced the problem of having a very high
DPCO coverage, weakening their bottom lines as well as hindering their growth
through the launch of new products. DPCO coverage is expected to be diluted further

29
in the near future benefiting the MNCs. New Legislation is also expected in the OTC
segment increasing the number of brands in the over the counter (OTC) segment. The
Indian pharmaceutical industry is also getting increasingly U.S. FDA compliant to
harness the growth opportunities in areas of contract manufacturing and research.

2004:

Dr.Reddy’s files Abbreviated New Drug Application (ANDA) with UNITED

STATES FOOD AND DRUG ADMINISTRATION (USFDA) for sumatriptan
Dr.Reddy’s appoints Dr. Dennis Langer as President for North America. Rotary club
presents Vocational excellence award to Dr. Anji Reddy Launched Redotil
(racecadotril), the first anti-hypersecretaory agent for the management of acute
diarrhea in India.

Recent Development of the Company

Dr.Reddy’s launches Dutas for treatment of enlarged prostate, Hyderabad, India April
19, 2004:

Dr.Reddy’s has launched Dutas (generic name: dutasteride), for the treatment
of enlarged prostate. Dr.Reddy’s is the first company to launch this drug in India.

Symptomatic enlarged prostate affects around 55% of men over the age of 50
and almost 90% over the age of 70 worldwide. In India there are over 77 million men
over the age of 60 who are affected by this disease. It is a progressive disease with
obstructive urinary symptoms that worsen with age. Until about ten year ago, the only
treatment was surgery. The medical management of symptomatic enlarged prostate is
now well established and the convenience of oral treatment as opposed to surgery.

2003:
Withdraws paediatric dosage of Nimesulitde from the market. Launches
Ibuprofen- First product under Dr.Reddy’s label in the U.S.Market Unveils
Tolterodine Tartrate drug for the treatment of urinary incontinence. Novartis
discontinues trials on Dr.Reddy’s compound DRF-4158. Drops three new compounds
from its research pipeline that were undergoing or had completed preclinical
development or animal trials.

2002:
Dr.Reddy’s makes its first overseas acquisition of BMS Laboratories Limited
and Meridian Healthcare, UK.

2001:
On April 11, Dr.Reddy’s becomes the first Asia Pacific Pharmaceutical
Company, outside Japan, to list on the New York Stock Exchange.
Dr.Reddy’s out licenses DRF 4158 to Novartis for up to US $55 million up
front. It is a milestone payment for specific clinical and regulatory endpoints.

30
 Dr.Reddy’s is the first Indian pharmaceutical company to obtain 180-day
exclusive marketing rights for a generic drug in the U.S market with the launch of
Fluoxetine 40mg capsules on August 3, 2001.

2000:
Dr.Reddy’s becomes India’s third largest pharmaceutical company with the
merger of cheminor Drugs Limited, and the acquisition of American Remedies
Limited.
Reddy US Therapeutics, a wholly owned subsidiary, is set up in the US.

1999:
Dr.Reddy’s acquires chennai-based American Remedies Limited.

1998:
Dr.Reddy’s licenses anti-diabetic molecule, DRF2725, to Novo Nordisk.

1997:
The co licenses anti-diabetic molecule, DRF2593, to Novo Nordisk. First
ANDA file.

1994:
Makes GDR issues of US$ 48 million when the foundation stone was laid for
a generic formulations facility to cater to highly regulated markets.

1993:
Dr.Reddy’s Research Foundation is established and becomes operational.

1990:
Dr.Reddy’s for the first time in India, exports Norfloxacin and Ciprofloxacin
to Europe and Far East.

1998:
Dr.Reddy’s acquires Benzex Laboratories Pvt. Limited to expand its Bulk
Activities business.

1987:
Dr.Reddy’s obtained its first USFDA approval for Ibuprofen and started
formulations operations.

1986:
Dr.Reddy’s goes public.

1986:
Dr.Reddy’s enters international market with exports of Methyldopa.

1984:
Dr.Reddy’s is established with an initial capital of Rs.25 lakhs.

31
Committees of board:

Committees appointed by the Board focus on specific areas and make

informed decisions within the authority delegated. The Committees also make
specific recommendations to the Board on various matters from time-to-time. All
decisions and recommendations of the Committees are placed before the Board for
information or for approval.

The Whole time Director:

• Dr. Anji Reddy (Chairman)

• GV Prasad (Executive Vice Chairman & Chief executive officer)

• Sathish Reddy (MD & Chief operating officer).

Dr.Reddy’s Management Council

Dr. Anji reddy is the founder and the chairman of the Board of Directors of
Dr.Reddy’s laboratories. He is also founder of Dr.Reddy’s foundation for Human and
Social Development.

Dr.Anji reddy has a Bachelor’s Degree in Science from Andhra Christian

college, Gunter. He completed his B.Sc (Tech) in pharmaceutical science from
Bombay University and Ph.D from the national chemical laboratory, pune. Dr. Anji
Reddy had six years experience in Indian drugs and pharmaceuticals limited (IDPL)
in the manufacture and implementation of new technologies in bulk drugs. After
leaving IDPL in 1973, Dr. Anji Reddy pioneered a number of bulk drugs.

Dr. Anji Reddy is a member of both board of trade and the prime minister’s
task force on pharmaceuticals and knowledge based industries. Dr. Anji reddy was
recently bestowed the padmashri by the Government of India for his distinguished
service in the field of trade and commerce. Apart from the company subsidiaries, he is
a Director in Diana Hotels Limited, ICICI Venture Funds, Biotech Consortium India
Limited and Biomed Limited.

Mr. G.V.Prasad:

32
 G.V.Prasad is the Executive Vice Chairman and Chief Executive Officer of
Dr.Reddy’s laboratories ltd. He leads the core team that has driven the company’s
growth and transformation from a formulations and bulk player to an emerging
discovery-led global pharmaceutical company. Prasad has a Bachelor degree in
Chemical Engineering from Illions institute of Technology, Chicago (1982), and a
Masters in Industrial Administration from Purdue University (1983).

As CEO, Prasad has championed the globalization of the company and has
played a key role in the company’s listing on the NYSE, the first pharmaceutical
company in Asia outside of Japan to do so. He has been the architect of the
company’s global generics strategy. He has helped create new platforms of growth for
Dr.Reddy’s in the custom chemicals services, Discovery Services and Specialty
Pharmaceutical segments. He has built a diverse, talented and experienced senior
management team in India and US and Europe.

Mr.Satish Reddy:

Mr. Satish reddy is Managing Director & Chief Operating Officer of

Dr.Reddy’s laboratories limited. Satish has a Master of Science degree in Medical
Chemistry from Purdue University, Hyderabad. Satish is the Chairman of the
Confederation of Indian Industries for Andhra Pradesh. He is a Director of Diana
Hotels Limited other than company subsidiaries.

Satish joined Dr.Reddy’s laboratories as Executive Director in charge of the

manufacturing operations of active pharmaceutical ingredients and formulations,
research and development activities, and new product development. He was
instrumental in steering Dr.Reddy’s from a predominantly API company to a
formulation led company.

Mr. Arun Sawhney:

Arun Sawhney joined Dr.Reddy’s IN 2001 AS PRESIDENT OF THE bulk

Actives SBU from Max-Gb Ltd. Where he Chief Executive. While at Max-Gb, Arun
succeeded in turning the company around and took it from fifth placed in its business
segment to market leader. Prior to that he headed the Global Business Development
function at Ranbaxy Laboratories Limited. He has also had successful stints as
Manager Exports with Hindustan Ciba Geigy and as Regional sales Manager with
Bayer India, earlier in his career.

Arun is a silver medallist, MBA from the International Management Institute,

New Delhi, and has a Bachelor’s Degree in commerce from Sydenham college of
Commerce and Economics, Mumbai.

33
 Arun has attended the European Generics Conferences in London in 1994,
1995 and 1996, and various Alliance Management programs conducted by
internationally renowned experts.

Mr. Saumen Chakraborty:

Saumen chakraborty has over 20 years of experience in strategic and

operational aspects of management as a management consultant, line manager and a
HR facilitator, with diverse portfolios such as Senior Manager (Finance & Accounts)
in Eicher, and Vice President (operations) in Techumseh, in previous assignments.

He had played a very significant role in the evolution of Dr.Reddy’s having

championed a number of world-class human resource initiatives, which helped
transform the company into one of the most respected employers in the country and a
great place to work.
A member of various industry for a include the CII and the National HRD
Network, seumen graduated with honours as the University topper from Viswa Bharti
University in physics, went on to pursue management from IIM, Ahmedabad. He
represented his university in various sports and captained the university football and
volleyball teams.

Dr. Reddy's has seven Board-level Committees, namely

Audit Committee

Compensation Committee

Nomination Committee

Shareholders' Grievance Committee

Investment Committee

Management Committee

Strategy Committee

The members of the Committees of Board are as under:

34
 Audit Committee Investment Committee
Dr. Omkar Goswami (Chairman) Mr. G V Prasad (Chairman)
Mr. Anupam Puri Mr. Satish Reddy
Prof. Krishna G Palepu Mr. P N Devarajan
Mr. Ravi Bhoothalingam
Mr. P N Devarajan

Compensation Committee Management Committee

Mr. Ravi Bhoothalingam (Chairman) Mr. Satish Reddy (Chairman)
Mr. Anupam Puri Mr. G V Prasad
Prof. Krishna G Palepu Mr. P N Devarajan
Mr. P N Devarajan
Dr. Omkar Goswami

Nomination Committee Strategy Committee

Mr. Anupam Puri (Chairman) Prof. Krishna G Palepu (Chairman)
Prof. Krishna G Palepu Mr. Anupam Puri
Mr. Ravi Bhoothalingam Mr. G V Prasad
Dr. Omkar Goswami Mr. Satish Reddy
Mr. P N Devarajan Dr. Omkar Goswami

Shareholders' Grievance Committee

Mr. P N Devarajan (Chairman)
Mr. G V Prasad
Mr. Satish Reddy

Human Resource Department

Every organization must have human resource department, as it is the

backbone of the organization. At various levels the HR is organized as corporate -
HR, SBU-HR and plant - HR.

The HR department is dedicated to achieve company’s objectives. It mainly

looks after various HRD and HRM functions as follows

Recruitment and selection of employees.

Training and development programs to employees.

Induction, placement and probation.

Promotion and transfer of employees.

35
 Performance appraisal.

Employee welfare schemes and social security measures.

Maintaining good industrial relations.

Other Allied Activities

♣ Maintaining statistical data and preparing reports

♣ Apprenticeship, appointment and attendance control.

♣ Activities like payment of provident fund, gratuity, increments, disciplinary

matters, issuing of memos, preparation of pay sheets, accident reports, attendance
calculation bonus, loans sanction, retrenchment, layoff etc.

Dr. Reddy’s HR philosophy

Dr. Reddy’s, as a company will

 Continuously strive towards having a diverse workforce for bringing in

different perspectives to work.

 Provide equal opportunity for employment development and advancement

based only on merit.

 Attract, develop and retain multi-skilled high performers regardless of national

origin and provide them with the resources that are necessary for them to give
their best.

 Build an organization that is continuously learning and challenging itself to

meet the dynamic business environment.

 Involving employees and their families in developing networks of talented

people for creative work and long-term relationships.

36
  Develop and nurture leaders who shall bring out the best in themselves and
others who are builders and enablers of system’s and work culture.

 Promote the spirit of teamwork and sharing in workplace in recognition that

contribution of many is necessary for innovation to occur.

Manpower Position

All together there are 239 employees in DRL’s unit 4. All belonging to management,
staff and contract labour.

The research covers all the employees of the Organization

UNIT – 4 MANPOWER STATEMENT

S. NO DEPARTMENT NUMBER

1 FINANCE 1

2 HRD 1

3 SEC & ADMN 3

4 MAINTENANCE 21

5 PRODUCTION 83

6 QUALITY ASSURANCE 7

7 QUALITY CONTROL 27

8 PDG 4

9 SH&E 3

10 PTSD 1

11 WARE HOUSE 9

TOTAL 160
37
API 160
IPD 78

TOTAL 239

HRD: Human Resource Department

SEC & ADMN: Security and Administration
PDG: Product development group
SH&E: safety health and environment
PTSD: plant Technical service department.
PERFECT

Preamble:

PERFECT – ‘Performance Enhancement and Coaching Tool’ is to guide

employees at each phase of Performance Management – Performance planning,
Performance coaching, Performance Review and Feedback & Consequence
Management – in order to build a high performing and learning organization.
This tool requires employees to be true to the principles of fairness, truth and
integrity while facilitating the system thus upholding and promoting Dr.
Reddy’s values.

Objective & Philosophy

Perfect at Dr. Reddy’s is essentially focused on enhancing performance through

employee development. Our endeavor is to build a sustainable performance culture.
This means that the superior must take a predominantly developer or coach role vis-à-
vis the employee. This also implies that the focus is on performance improvement,
growth & employee alignment with organization strategy & values and not merely on
rewards and differentiation.

Philosophy of perfECT at Dr. Reddy’s is to:

1. Align employees with organizational strategy and values.

2. Be perceived as transparent & fair in the process.
3. Be oriented to people development and yet, permit the onus of development
on the individual.
4. Encourage teamwork and collaboration.
5. Create a system of assessment by team rather than individuals.
6. Differentiate among team members based on performance and potential.
7. Raise the performance bar.
8. Show intolerance to mediocrity.

Key processes of perfECT

38
 1. Performance planning / Goal setting
2. Performance Coaching
3. Performance Reviews, half yearly / Annual review
4. Feedback and Consequence Management

1. Performance planning

Once the business/functional scorecard is frozen, the superior and the employee
should meet to clarity expectations from their key customers / stakeholders and each
other. This input should be converted into performance goals to be met during the
review period. To create a healthy balance, all goals should be classified into four
clear perspectives:

 Financial outcomes (ROI, EVA, EBIDTA etc)

 Customer outcomes (New customer acquisition, promise vs delivery etc.)
 Business Building (pipeline, alliances etc.)
 Organization Building (critical competencies, process excellence, leadership
development, high talent grooming etc.)

2.Performance coaching:

Performance coaching is an ongoing process and based on continuous

dialogue between the superior and employee. It is important to spend time preventing
performance problems rather than evaluating them at the end of the year. The superior
and employee should meet periodically to review performance, learning’s and
progress against set goals. Regular dialogue enhances employee engagement and is
the foundation of coaching.
A relationship based empathy, warmth, respect and genuineness is necessary for the
success of any coaching initiative.

3.Performance Review:

a) Half Yearly Review:

A formal half-yearly review is important for the superior and employee to take
stock of the progress made and to make course corrections. The focus during the
review should primarily be on overcoming constraints and planning for the rest of the
performance cycle.

b) Annual Review:

Self- Review:
The annual review starts with a self-review.

Performance Review:

The superior while reviewing the performance of the employee shall try to take
feedback from as many sources as possible in order to arrive at a reasonably objective
conclusion. It would be ideal if the superior regularly gets this input from the relevant

39
stakeholders to avoid any bias. The superior then analyzes goal achievement data,
self- development efforts and the feedback from customers, suppliers or project
managers.

Apex Review Committees:

The Apex Review Committee (ARC) would constitute of a group of people who have
clear visibility of the employees they are reviewing. There can be multiple ARC’s for
a particular department or unit. The final assessment and overall rating is decided at
the ARC.

4) Feedback & Consequence Management:

a) Superiors give feedback and review performance of their team at various times
during the year.

b) For the bottom 5% performance across the organization, a detailed 90 days rolling
Performance Improvement Plan (pip) is drawn up to provide them with an
opportunity to bring them to the desired level of performance. HR will facilitate this
process.

MAGAZINES

ASPIRE:

The Journal of API_GBU of Dr. Reddy’s Laboratories

Aspire is your Magazine, our Magazine & belongs to each one of us as a medium to
express our thoughts, experiences and aspirations. It not only serves as a forum to
reflect, to share thoughts, ideas, events and happenings, both on the professional and
personal front, but also highlights the humane dimension of us all and works towards
providing a feeling of belonging to the organization. Aspire is an embodiment of our
cherished memories & our dreams for the future.

The aspire Journal gives the insight of the company’s

Snapshot of API Business: The API business is the core of Dr. Reddy’s operations.
The company started as an API company, and while it has expanded and grown in all
areas of the pharma on which everything else is based. Dr. Reddy’s manufactures
over 100 APIs at six different locations. All the locations are technologically well
equipped and have set systems in place. They also have approvals from most of the
world’s Regulatory authorities, like the FDA, MCC, TGA, MHRA etc. Our APIs are
sold in over 60 countries worldwide and also service a part of our internal
requirements for Formulations and Generics.
The current focus is on increasing the basket of high value products, and on getting
involved in new products with the customers from the starting stage itself. We also

40
intend to leverage our strengths in regulatory, intellectual property and formulation
technology to provided value added offering to our customers.

Happenings

• Pragnya program in API 4

• “Code of ethics”- roll out at Api-4

• cGMP celebrations at API-3:

cGMP celebrations were conducted for the first time on April 6, 2005, at API3. The
objective of this new initiatives was to motivate employees and create and awareness
of cGMP among all levels of people across the plant.
Six events were conducted : Case study, Quiz, Essay writing, Written test and
a cartoon & Slogan contest with respect to cGMP. Guidelines, regulatory guideline,
and on in-house procedures.

World Environment Day 2005 Celebration:

World Environment Day, commemorated each year on 5 June, is one of the princpal
vehicles through which the United Nations stimulates Worldwide awareness of the
environment and enhances political attention and action.
The World Environment Day theme selected for 2005 was ‘Green Cities’ and the
slogan was ‘Plan for the Planet!’ the agenda was to give a human face to
environmental issues: empower people to become active agents of sustainable and
equitable development; promote an understanding that communities are pivotal to
changing attitudes towards environmental issues; and advocate partnership, which
will ensure that all people enjoy a safer and more prosperous future.

KNOWLEDGE SPACE:

API GLOSSARY:

Knowledge space as a place where you can share your expertise on a particular area
which helps in improving understanding of all others with regards to that function or
domain. This would not only help in our individual learning endeavors, but serve as a
forum where ideas from varied areas can get cross-pollinated.

Acceptance Criteria
Active Pharmaceutical Ingredient (API)
Analytical Methods Validation
Batch
Biologic Active Pharmaceutical Ingredient
Biologic Product
Chemical Reaction
Containment

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 Drug
Drug Products
Expiry/Expiration Date
Impurity
Impurity Profile
Intermediate
Manufacture, Processing, Packing, or Holding
Mother Liquor
New Molecular Entity
Pilot Scale
Polymorphism
Process Validation
Quality Assurance
Quarantine
Retest Period
Solvent
Working Standard

Knowledge space gives the TEN COMMANDENTS of Marketing.

ELIXIR

ELIXIR is a house magazine it’s a quarterly magazine.

The first-ever ELIXIR correspondent’s workshop was a huge success and has
helped lend direction to this issue. A need was felt to ELIXIR less formal and
extend its readership to our families. The Young sparks of Dr. Reddy’s now have
an entire page to themselves. Elixir is also open to receiving contributions from
families of employees. A ‘Quiz Corner’, maintained by the Chakravyuh team,
makes its debut in this issue, giving you a chance to win exciting prizes. ‘Elixir
Recommends’ is another interesting newcomer. The regulars, like the ever-
popular ‘Travelogue’, ‘slice of Life’ and ‘In First Person’, continue to make their
presence felt.

• Cancer awareness initiatives

Such Knowledge-sharing symposia are being planned for every year, to address key
issues in the management of lung cancer. Dr. Reddy’s brands Cytogem, Docetere and
Mitotax are well established in the lung cancer chemotherapy segment.

Market Verve

• Brand new

Corporate Social Responsibility

• Blood donation camp

42
 • Social initiative
• Caring for special children
• Promoting hygiene
• Aiding poor students

Dr. Reddy’s Foundation:

A decade Life

Dr. Reddys Foundation (DRF), whose flagship program Livelihood Advancement

Business School (LABS) has generated thousands of sustainable livelihoods in India,
Vietnam and Sri Lanka, entered the 10th year of its operations on October 28. DRF
staff celebrated the day with great enthusiasm, accompanied by G Anuradha Prasad
(Managing Trustee) and K Satish Reddy (COO, Dr. Reddy’s).

Training Academies
Outbound training for CFT
Rewarding excellence
Reaching for stars

TEJAS
TEJAS is a Quarterly magazine.
Anonymous:
“ Make each day magnificent adventure,
Accept the challenges that come your way,
Seize each opportunity that you find,
Without concern for what others might say,
Experience each day with open arms,
Savoring both victory & strife,
Welcoming the good & bad together,
For only then will you know the joy of life.”

Tejas contain the core issues of the company like:

Why do company exist?

L & D – Vision and Goals
Charter
Strategic Goals
Stories with Learning

Main focus areas of L & D

• Learning Development Programs
• Long-term Education Programs
• Certification Courses
• Training Programs
• Organization Development Initiatives
• Learning Resources
• Knowledge sharing platform
• Family programs

43
 PHARMACEUTICAL NEWS

The pharmaceutical news contains the news of their acquisitions and the press
releases.

ANKUR
.
Ankur stands for SPROUT, which means beginning of growth or germination
from a bud. Ankur , the learning center of Dr. Reddy’s group aims at providing
learning resources for self development & potential in folding through shared learning
& self learning. Vision of Ankur is to involve people to enable Dr. Reddy’s family to
be the best learning organization.

Dr. Reddy’s Training:

Improving competency baseline:

In DRL training needs are assessed and training programs are conducted to
develop the employees.
Programmes like:

• Communication skills, Time management and Group Discussions are

conducted regularly.
• Buddy programs
• Regularly conducted Knowledge sharing sessions/PRAGNA
• OCS: Organizational climate survey
• Out bound trainings

Training Academies:

BPO training academy:

The BPO sector is growing phenomenally in India, and is likely to employ over a
million people in the next five years. In associated with ICICI one source, LABS
trained a pilot batch of 21 BPO students at Hyderabad in September. All of them
have been successfully placed in reputed organizations. Plans are underway to set
up training centers at other places in India.

Micro-irrigation academy:

Micro-irrigation has a huge potential for rapid growth in India, with over 400,000
ha of agricultural land already covered by it. In technical collaboration with Jain
irrigation systems and sudhakar with pipes, Labs has trained 20 students for

44
 positions such as field surveyors, filters, plumbers and electricians. The trainees
have been absorbed by the collaborators.
Retail sales management academy:

In association with Food World, LABS has set up a retail sales management
academy, which will be piloted in Hyderabad.

Multi-skilled welding academy:

LABS have set up this academy in association with TATA projects, to train
students for various entry-level positions.

L&D - VISION & GOALS:

L&D’s endeavour is to build and promote a culture of continuous learning and

innovation leading to individual and organizational excellence.

L&D’s charter has been formulated as follow:

• People’s learning and development Cultural transformation.

• Preparing for tomorrow’s needs
• Knowledge Management
• Engaging families and building networks

Strategic Goals:

 Create a learning climate, wherein each employee takes onus for personal
development, and enhance his/her knowledge & skills
 Strengthen leadership skill base across levels in Dr. Reddy’s
 Build strategic capabilities & scale- up the talent pools in the area of IPM, PM,
RA etc
 Facilitating transition towards the desired culture, by creating a shared
understanding on the core values & promoting value based functioning
 Contribute to employee growth by offering higher education opportunities.

Towards realizing vision and roadmap, L&D is working on the following main focus
areas:

 Leadership Development programs

• Basic Leadership program

45
• Advanced Leadership program

 Long-term Education Programs

• M.sc (pharmaceutical chemistry)

• MBA (Executive-Pharma Management)

 Certification Courses

• Intellectual property management

• Project management

 Training Programs

• Know your business

• Managerial effectiveness programs

• Technical and functional programs

• Training on quality

 Organization Development Initiatives

• Values Week (value deployment)

• 360-Degree Feedback

• Organization climate survey

• Code of business conduct and Ethics roll out

 Learning Resources

• Library

• E-campus

 Knowledge sharing platform

• Technical conclaves

• Cutting Edge

46
  Family programs

• Stress management

• Programs for housewives and children

In the years to come, L&D aims to emerge as a Corporate University of Dr. Reddy’s
by offering strategically important learning services to its stakeholders.

Some of the MOTIVATIONAL activities carried out in Dr. Reddy’s are:

Rewarding excellence

Rewarding the high performers

Transport facility

Incentives (monetary & non-monetary)

Bonus

Celebrating the events.

47
Knowledge Management
-An Overview

 Why Knowledge Management

 Roots of Knowledge Management
 Definitions of Knowledge
Management
 Principles of Knowledge Management
Knowledge Management Process
 Knowledge Development Cycle
 Obstacles to KM implementation

48
49
Knowledge Management

At

Dr.Reddy’s Laboratories

50
 Knowledge management – an overview

Preamble

In the present day market scenario of intense competition, organizations need

to know what they know and able to leverage on its knowledge base to gain
competitive advantage. In this knowledge era, organizations can create and sustain
competitive advantage through initiation of appropriate knowledge management
process. The organizations that can leverage technology to exploit the data realize the
benefits by creating a competitive advantage for itself. The competitive advantage
could be in the form of identifying trends, unusual patterns and hidden relationships.
The recent emphasis on knowledge management arise out of the needs of the
organizations to manage resources more effectively in a hyper-competitive, global
economy. The need for emphasis on knowledge management is also stressed by
Nonaka and Takeuchi in their statements. In an economy where the only certainty is
uncertainty, the one sure source of lasting competitive advantage is knowledge.
Successful companies are those that consistently create new knowledge, disseminate
it widely throughout the organization and quickly embody it in new technologies and
products.

Knowledge in knowledge management

Many management researchers and authors have stressed the importance of

knowledge. Peter drucker has declared that knowledge is just not another resource
like labor, capital, but is the only important resource today. Toffler subscribes to the
views of Drucker, by proclaiming that knowledge is the source of the highest-quality
power shift that lies ahead. Quinn shares a similar view while stating that the
economic and the producing power of modern organizations lies more in its
intellectual assets and capabilities more than the other tangible assets. Nonaka and
Takeuchi have focused on how Japanese companies have leveraged their knowledge
assets to gain competitive advantage and industry leadership. The paradox in
knowledge management is that we are trying to manage what cannot be managed.
Before we set about managing knowledge, we need to understand what the term
knowledge refers to and the various classification of knowledge.

Davenport has defined knowledge as a fluid mix of framed experience, values,

contextual information and expert insight that provides a framework for evaluating
and incorporating new experiences and information. It originates and is applied in the
minds of the owners of knowledge. In organizations, it often becomes embedded not
only in documents or repositories, but also in organizational routines, processes,
practices and norms.

Ryle, in one of his works, has explained the different categories of knowledge.
First knowledge is referred to what is gained through the understanding of concept
and frameworks, generally referred to as ‘knowing why’ another classification of
knowledge, what Peter Senge

51
Termed as capacity for action, refers to an understanding of the facts and procedures
required for making things happen. Knowledge also refers to the codification of
factual knowledge based on prior experience, which is

• Need for life-long learning is an inescapable reality

• Increasing dominance of knowledge as a basis for organizational
effectiveness.
• The failure of financial models to represent the dynamics of knowledge
• The failure of information technology by itself to achieve substantial
benefits for organizations for organizations
• The diffusion of global capabilities causing developed countries to become
service-based economies depending on labor from developing countries
• The unintended consequences of universal information access.
• The important attached to this subject in management schools.
The importance of knowledge management is also corroborated by various
research studies.
• A survey by Pricewatemouse Coopers and world economic forum found that
95% of CEO’s saw KM as an essential ingredient foe the success of their
company.
• According to the International Data Corporation, companies worldwide are
expected to dramatically increase their knowledge management expenditure
from $2 million in 1999 to $12 million in 2003.
• Generally tacit knowledge and is termed as ‘knowing that’. The next usage
of knowledge refers to codification of factual knowledge which is acquired
knowledge and this could be tacit or explicit. This term is also used while
referring to social knowledge of networks indicating the person’s known.
This, in general terms, is referred to as ‘knowing who’ knowledge also refers
to the cultural knowledge facilitating communication, which in common
terms is termed as ‘knowledge of meaning’.

Why knowledge management

The field of knowledge management has gained currency in recent times due to
a wide variety of reasons. Some of them are

• The speed of change in the market place has become so rapid that the time
available for organizations to gain experience and acquire knowledge has
diminished. Organizations are required to differentiate their product or
produce them in fastest possible time and the lowest possible cost.
• Competition in the market place has forced organization to reduce costs. One
of the methods followed is reduction in manpower. This has led to early
retirements and increasing mobility of work force resulting in a loss of
knowledge.
• Organisations are forced to compete on the basis of knowledge
• Market place is increasingly competitive

52
 • Reduction is staffing create a need to replace informal knowledge with formal
methods
• Reduction in work force due to competitive pressure

Roots of knowledge management

Business
transformation

Learning Innovation
Organisation

Roots of
Knowledge
Intellectual Management Information
assets management

Knowledge
based systems

Learning organization
If an organization conforms to the required norms and can be termed as a learning
organization, then it becomes one of the start points of knowledge management.

Intellectual assets
The intellectual assets in an organization are the people having gained expertise
through years of work experience and are tacit in nature. This knowledge has to made
explicit and manage in order to leverage on it and gain competitive advantage.

Knowledge based systems

The systems that have evolved in an organization to facilitate the smooth functioning
of the organization should facilitate harnessing the existing knowledge in the
organization. These systems could be a basis of knowledge management.

Information management
Information is the core of knowledge management, since information combined with
experience and intuition leads to knowledge. Hence, proper information management
system can result in an effective knowledge management system.

Innovation

53
Creativity and innovation are methods by which new knowledge is created.
Innovation comes out of increment changes to existing products or processes and a
radical change, which is different from the original process or product. Radical
changes give a new dimension to the existing knowledge base and incremental
changes result in changes in perception and line of thinking leading to new knowledge
insights.

Business transformation

Business transformation acts as another catalyst for knowledge management.

Organizations respond to the various changes in the market place through
transformation processes like business process re-engineering.

Evolution of knowledge management

Historic developments may be portrayed by the following stages of dominant

economic

activities and foci leading to the evolution of knowledge management.

Agrarian Creating products for consumption and

Economics exchange.

Natural resource exploitation dominate while

Natural resource
customer intimacy was pursued separately by
Economics
expert tradesmen and guilds.

Continued focus on operational excellence and

Product Revolution
product leadership.

Knowledge
New focus on customer intimacy.
Revolution

Hierarchy of Business Intelligence

Realizing the benefits from raw data, which goes through a number of stages as
depicted in the following figure.

54
Data

The basic element of information in an organization is in the form of data.

Organizations collect, summarize and analyze this data to identify patterns and trends.
Most of the data thus collected is associated with the functional processes of the
organization.

Information

Each data element is a component of a transaction and does not provide much
information unless they are presented in conjunction with other data elements. The
accumulation of data into a meaningful context provides information.

Analytic

The information gathered in the previous stage, although provides much insight,
separate or regrouping this information and analysis extends the value of the
information. Applications with analytical processing capabilities provide users with
the ability to analyze information and determine relationships, patterns.

Knowledge

55
Knowledge is different from data, information or analysis. Knowledge can be created
from any one of those layers or it can be created from existing knowledge using
logical inferences.

Wisdom

Wisdom is the utilization of accumulated knowledge to create a higher level of

understanding of the data.

An example would help in understanding the distinction better. Mere numerals like
41, 42 are termed as data. This data, if read in the context of temperature would give
an indication of the weather in that part of the world. The fact that these numbers
indicate the temperature is information. Knowledge refers to the understanding that
this temperature indicates summer. The decision to venture out or not in this weather,
or an understanding of the effects of this weather is wisdom.

Definition of Knowledge Management

There are as many definitions for Knowledge management as there are people
who are working on this subject. Given below, are some of the most commonly used
definitions.
KM is to understand, focus on and manage systematic, explicit and deliberate
knowledge building, renewal and application- that is manage effective knowledge
processes.

KM is knowledge creation followed by interpretation, knowledge dissemination and

use, and knowledge retention and refinement.
De Jarnett

56
Powerful environment forces are reshaping the world of the manager of the 21st
century. These forces call for a fundamental shift in organization process and its
strategy. This is knowledge management.
Taylor

Knowledge Management is the process of critically managing knowledge to

meet existing needs, to identify and exploit existing and acquired knowledge assets
and to develop new opportunities.
Quintas

The crux of the issues is not information, information technology. The answer turns
out to lie more with psychology and marketing of knowledge within the family than
bits and bytes.
Peters

Knowledge Management is the activity, which is concerned with strategy and

tactics to manage human centered assets.
Brooking

Knowledge Management is about enhancing the use of organizational

knowledge through sound practices of information management and organizational
learning.

Source: Broadbent
(1998)

A learning organization is proficient at creating, acquiring, organizing and sharing

knowledge, and at applying this knowledge to develop its behavior, position or
objectives. The essential goal of knowledge management is to harness the
organization’s information resources and information capabilities to enable it to learn
and adapt to its changing environment.”
Source: choo (1998a)

The ultimate corporate resource has become information – the ultimate competitive
advantage is the ability to use it – the ultimate competitive advantage is the ability to
use it – the sum of the two is knowledge management.
Source: Oxbrow & Abell
(1998)

Systematic approaches to help information and knowledge flow to the right

people at the right time so they can act more efficiently and effectively.

Explicit and systematic management of vital knowledge and its associated

processes of creating, gathering, organizing, diffusion, use and exploitation of
organizational objectives.

57
KM is concerned with the exploitation and development of the knowledge assets of an
organization with a view to furthering the organizations objectives . The knowledge to
be managed includes explicit, documented knowledge and tacit, subjective
knowledge. Management of this knowledge entails all the processes associated with
the identification, sharing and creation of knowledge. This requires systems for the
creation and maintenance of knowledge repositoreries, and to cultivate and facilitate
the sharing of knowledge and organization learning. Organizations that succeed in
knowledge management are likely to view knowledge as an asset and to develop
organizational norms and values, which support the creation, and sharing of
knowledge.

Understandings from definitions

• KM relates to both theory and practice.

• Definitions are not predicated on information technology.
• KM is multi- disciplinary
• People and learning issues are central to KM.
• Technology is a useful enabler rather than a central tenet at the heart of KM.

Categories of Knowledge Management models

a. Nonaka and Takeuchi

These types of models categorize knowledge into discrete elements. Nonaka and
Takeuchi look at the process of Knowledge management as a Knowledge creation
process.
TO
Tacit Explicit
Socialisation Externalization
Tacit

Internalisation Combination
58
From

Explicit

The transforming processes are assumed to be socialization, externalization,

internalization and normalization.

Critique of this model

The model implies a mechanism approach to knowledge categorization, which

is over simplistic and the process of knowledge transfer is far mare complicated in
organizations.

b. Hedlund and Nonaka – Knowledge management model

Individual Group Organization Interorganizational

Domain

Knowing QC Organization Suppliers

Calculus Documented Chart Patents
Analysis of
its
performance
Cross Team Corporate Customers
-Cultural Coordination Culture Attitude to
Negotiation In complex products
Skills World and
expectations

Articulated
Knowledge

Tacit
Knowledge

This model assumes four different carriers of knowledge in the process of knowledge
creation. This is an improvement over the previous model in that it identifies the
carriers of knowledge, but assumes that the carriers can be segregated and identified.

c. Boisot model

59
 Codified

Proprietors Public
Knowledge Knowledge

Personal Common
Knowledge Sense
Uncodified

Undiffused Diffused

Codified - Knowledge that can be readily prepared for transmission.

Uncodified - Knowledge that cannot be easily prepared for transmission.
Diffused - Knowledge that is easily shared.
Undiffused - Knowledge that cannot be easily shared.

Critiques of this model point to the limitation in that codified and uncodified
are two distinct and discrete categories of knowledge, which is generally not as
distinct as portrayed. Diffused knowledge is rather general and is not clear if it
includes incorporating knowledge within the organization, as well as spreading it.

d. Intellectual capital models

These models represent knowledge management as intellectual capital.

These models ignore the political and social aspects of KM. Moreover, intellectual
capital models are generally mechanistic in nature, treating knowledge as an asset
similar to other assets.

e. Socially constructed models of KM

This model views knowledge as intrinsically linked within the social and learning
processes within the organization. These models portray a more holistic approach to
the process of knowledge creation.

Knowledge creation model - Demerest

60
 Knowledge
construction

Knowledge
Use
Embodiment

Knowledge
dissemination

This model emphasizes the construction of knowledge within the organization.

This construction includes the social and scientific inputs. This knowledge is then
embodied within the organization through explicit programs and social interchange.
This is followed by a process of dissemination of espoused knowledge throughout the
organization. Ultimately, this knowledge is seen as being of economic use in regard to
the organizational outputs.

This model follows the generic process of knowledge construction of

collection, dissemination and use.

Critiques of this model refer to the portrayal of discrete path of flow of

Knowledge, which is generally not the case, practically speaking.

Types of knowledge

Knowledge can be classified into various types. Authors have classified into
various categories and are presented below

61
Tacit knowledge Knowledge that cannot be articulated
Implicit knowledge Knowledge that can be articulated but has not been
articulated
Explicit Knowledge Knowledge that is articulated and more often than not,
captured in the form of text, tables, diagrams etc.
Procedural knowledge Knowledge that manifest itself in the doing of something.
Declarative Knowledge that consists of description of facts and things or
knowledge of methods and procedures.
Strategic knowledge Knowing when to do something and why to do it.

Principles of knowledge management

Knowledge management is expensive

Knowledge is an asset, but requires investment in other assets for effective

management. The investments could be for the following activities
• Knowledge capture
• Categorization of captured knowledge
• Developing information technology infrastructures and applications for the
distribution of knowledge
• Educating employees on the creation, sharing and use of knowledge

(Buckman laboratories spend 7% of its revenues on KM and Mckinsey and Co.

spends 10% of its revenues on developing and managing intellectual capital)
It is worth spending this, since it is more expensive to re-invent the
wheel and create the available knowledge all over again. Non-availability of adequate
and appropriate knowledge at the time may also lead to loss of opportunities.

One way of finding out the cost of knowledge management is to

estimate the cost of lack of knowledge management.

Effective management of knowledge requires hybrid solutions of peoples and

technology.

Effective use of people and computers are required to manage knowledge. Computers
could be used to capture, transform and distribute highly structured knowledge that
changes rapidly and people are used to understand the created knowledge, interpret it,
synthesize various unstructured forms and data and analyze it. So an effective systems
requires a hybrid knowledge management environment in which both the human and
computers in complementary ways.

Knowledge management is highly political

62
 Knowledge is power and hence is associated with money, success, lobbying,
back-room deals which manifest power. People who manage knowledge would lobby
for its use and broker deals between those who have the knowledge and those who use
it.

Knowledge management requires knowledge managers

Knowledge cannot be effectively managed unless it is delegated and controlled

by a group of people who are responsible for it. The task of this group would be to
collect and categorize knowledge, establish a knowledge oriented technology
infrastructure and monitoring the use of knowledge.

Organizations like Mckinsey etc have knowledge groups headed by ‘Chief

knowledge officers’. Politics plays major part in this when managers think that by
virtue of managing knowledge, they are more knowledgeable than the others. The
most important qualification for such a role is being ‘egoless’ as argued by one
manager at HP.

Knowledge management benefits more from maps than models. More from
markets then from hierarchies effective knowledge management it more to do with
providing maps for exiting knowledge rather than creating hierarchies of knowledge.
They should be able to connect the employees needs with the required information
from database.

Sharing and using knowledge are often unnatural acts

The normal tendency is reluctance to sharing of knowledge with the natural
tendency being to hoard knowledge and look suspiciously upon that from others. One
should be highly motivated to allow knowledge to be shared by the others and to be
open to share other’s knowledge.

Organizations like lotus Development devotes 25% of the total performance

evaluation of its customer support workers to knowledge sharing.

Knowledge management means improving knowledge work

processes
In any organization, knowledge is created through generic knowledge management
processes, but knowledge is also generated, used and shared intensively in a few
specific knowledge work processes like market research, product design and
development. Improvements need to be made in these processes to have a more
effective knowledge management in the organization
Knowledge access is only the beginning

63
 The process of knowledge management does not mean having access to
knowledge. In addition to access knowledge management requires attention and
engagement. In order for knowledge consumers to pay attention to knowledge, they
must be active recipients through summarizing and reporting to others through role
playing based on the usage of knowledge and receiving the knowledge through close
interaction with the providers of knowledge, more so, in the case of tacit knowledge.

Knowledge management process never ends

The task of knowledge management is a continuous process and can’t be said

to be fully managed.

One reason that knowledge management never ends is that the categories of
required knowledge are always changing. New technologies, management
approaches, regulatory issues, employee concerns and customer concerns are always
emerging.

Knowledge management requires a knowledge contract

Most organizations cannot fix ownership or usage rights to employee

knowledge. Management of knowledge requires a contract between employees and
the organization to ensure that the knowledge acquired by the employee during his
tenure is captured and properly documented.
This assumes importance in the present day environment with employees
moving more quickly to new jobs and new organizations.
Thomas Devanport

Knowledge management process

The steps involved in the process of knowledge management are

*Knowledge creation

Nonaka and Takeuchi have mapped the knowledge creation process from the
tacit and explicit knowledge available in an organization.

*Knowledge capture

Most of the knowledge in organizations exists as tacit knowledge gained and built-up
through years of experience. This knowledge has to be captured and sorted in
databases.

*Knowledge application

The knowledge created and captured through would then need to be applied to
achieve competitive advantage.

*Knowledge measurement

64
 The knowledge created, captured and applied to competitive Advantage can be
measured by seeing the outcome of the applied knowledge.

Galagan proposes the following sample list of knowledge management processes

*Generating new knowledge

*Accessing knowledge from external sources

*Representing knowledge in documents, databases, software etc.

*Embedding knowledge in processes, products and services

*Transferring existing knowledge around an organization

*Using accessible knowledge in decision-making

*Facilitating knowledge growth through culture and incentives

*Measuring the value of knowledge assets and the impact of knowledge management

Knowledge Development Cycle

The knowledge development cycle is defines the knowledge management

process in an organization, as a cyclic process from knowledge creation to knowledge
review and revision.

Knowledge
Adoption

Knowledge Knowledge Knowledge

Distribution Development Creation
Cycle

Knowledge
Review&
Revision

65
The knowledge creation process involves the creation of new knowledge in the
organization. This also includes activities like research and development, consulting,
education etc. The knowledge adoption process involves the adoption of created
knowledge and adapting the knowledge.

The knowledge distribution and knowledge review and revision process

involves the conversion of converting the individual knowledge to organizational
knowledge.

Obstacles to KM Implementation

Lack of business purpose

Most organizations look at implementation of knowledge management

program as an end in itself. Organizations need to look beyond implementation and
to define ways of dealing with the pressing problems of the organization using
knowledge management.

Poor planning and inadequate resources

Many companies focus their attention on the KM pilot project and forget about
the roll out. Organizations need to make the plan the rollout and the pilot plant
simultaneously to avoid of focus on the mail roll out.

Lack of accountability

Knowledge management initiatives peter out it accountability is not fixed on

persons to implement the initiatives and see the end of it. Typically, knowledge
management programs could be implemented by a core team dedicated for the
purpose.

Lack of customization

Knowledge management is not a one-size-fit –all program. It works best

when individual programs are tailored to the need of the individual users. It should
also fit into the organization culture.

66
67
 Analysis
&
Interpretation

 Data Analysis

 Observations

68
1.The generation of new ideas and knowledge is highly valued.

Responses Respondents Percentage

Strongly Disagree 0 0
Disagree 0 0
Mildly Disagree 2 4
Mildly Agree 1 2
Agree 19 38
Strongly Agree 28 56

Percentage

04 2
Strongly Disagree
Disagree
Mildly Disagree
38
56 Mildly Agree
Agree
Strongly Agree

The survey of respondents reveals the following:

4% of the respondents mildly disagree stating that new ideas and knowledge aren’t
valued.2% of the respondents mildly agree, but majority of the survey reveals that
generation of new ideas and knowledge is encouraged by the fact that 38% agree and
56% strongly agree.

This is a clear indication that in Dr.Reddy’s new ideas and knowledge activities are
highly valued.

69
Responses Respondents Percentage
Strongly Disagree 0 0
Disagree 0 0
Mildly Disagree 3 6
Mildly Agree 7 14
Agree 36 72
Strongly Agree 4 8

2.Job analysis are frequently performed to determine job duties and

requirements.

0 Percentage

0
8 6
14 Strongly Disagree
Disagree
Mildly Disagree
Mildly Agree
Agree
Strongly Agree
72

The survey of respondents reveals the following:

6% of the respondents feel that job analysis is to some extent performed and they
mildly disagree with the question. 14% of the respondents mildly agree, in this survey
also majority of the respondents i.e. 72% agree with the fact that job analysis is
performed, 8% strongly agree about the job analysis.

There is a clear indication that most employees agree that job analysis is
performed frequently to determine the employees job requirements and job duties.

70
3.An electronic knowledge base exists to store new ideas, knowledge, solutions
and best practices.

Responses Respondents Percentage

Strongly Disagree 0 0
Disagree 0 0
Mildly Disagree 2 4
Mildly Agree 12 24
Agree 24 48
Strongly Agree 12 24

Percentage
0
0
4
24 Strongly Disagree
24
Disagree
Mildly Disagree
Mildly Agree
Agree
Strongly Agree
48

The survey of respondents reveals the following:

4% mildly disagree that an electronic knowledge base exists to store new ideas, 24%
mildly agree with the question, but majority of the employees i.e. 48% agree with the
fact and 24% strongly agree which is a clear indication that electronic knowledge base
exists in their company to store new ideas.

71
4. Documents are proactively shared with employees

Responses Respondents Percentage

Strongly Disagree 0 0
Disagree 0 0
Mildly Disagree 3 6
Mildly Agree 12 24
Agree 23 46
Strongly Agree 12 24

0 Percentage

0
6
24 Strongly Disagree
24 Disagree
Mildly Disagree
Mildly Agree
Agree
Strongly Agree
46

The survey of respondents reveals the following:

6% of the respondents mildly agree that documents are proactively shared, 24%
mildly agree and 46% of the employees agree with the statement, 24% employees
strongly agree.
We can clearly observe that majority of the respondents agree with the fact
that documents are proactively shared with employees.

72
5.The collective experience of employees is an integral part of decision making.

Responses Respondents Percentage

Strongly Disagree 0 0
Disagree 2 4
Mildly Disagree 3 6
Mildly Agree 3 6
Agree 27 54
Strongly Agree 15 30

Percentage
0
4
6
6 Strongly Disagree
30
Disagree
Mildly Disagree
Mildly Agree
Agree
Strongly Agree
54

The survey of respondents reveals the following:

The survey states that 4% disagree, while 6% mildly disagree with the statement. 6%
mildly agree and 54% agree that the collective experience of employees is an integral
part of decision-making, 30% strongly agree with the statement.

By the above responses we can clearly analyze that majority of the employees
feel that collective experience helps them in making decisions.

73
6.Experience is highly valued.

Responses Respondents Percentage

Strongly Disagree 2 4
Disagree 1 2
Mildly Disagree 3 6
Mildly Agree 6 12
Agree 10 20
Strongly Agree 28 56

Percentage

4 2
6
Strongly Disagree
12 Disagree
Mildly Disagree
56 Mildly Agree
Agree
20
Strongly Agree

The survey of respondents reveals the following:

4% of the respondents strongly disagreed with the above said statement,

2% of the employees disagreed with the fact, while 6% mildly disagreed with the
above fact.
12% of the employees mildly agree with the fact that experience is highly valued,
20% of the employees agree with the question, while 56% of the respondents strongly
agree.
From the survey we can analyze that most employees strongly agree that experience is
highly valued.

74
7.An organizational intranet portal exists where information and knowledge relevant
to job requirements may be retrieved.

Responses Respondents Percentage

Strongly Disagree 0 0
Disagree 2 4
Mildly Disagree 0 0
Mildly Agree 14 28
Agree 27 54
Strongly Agree 7 14

Percentage
0
4
14 0
Strongly Disagree
28 Disagree
Mildly Disagree
Mildly Agree
Agree
Strongly Agree
54

The survey of respondents reveals the following:

4% of the employees show their disagreement with the fact that there is an intranet
portal where they could retrieve information when and where required.
28% of the employees mildly agreed with the fact, while 54% agree and 14% strongly
agree with the fact that there exists an intranet portal.
The above analysis shows that majority of the respondents agree that intranet
portal exists in the organization.

75
8.The information and knowledge u receive is accurate and up-to-date.

Responses Respondents Percentage

Strongly Disagree 0 0
Disagree 1 2
Mildly Disagree 3 6
Mildly Agree 9 18
Agree 22 44
Strongly Agree 15 30

0 Percentage

2
6

30 Strongly Disagree
18
Disagree
Mildly Disagree
Mildly Agree
Agree
Strongly Agree
44

The survey of respondents reveals the following:

2% of the employees are disagreeing with the fact that the information they receive is
up to date and accurate, while 6% mildly disagree with the statement.
18% of the respondents mildly agree with the above statement, 44% of their fraternity
agrees and 30% strongly agree with the statement.
The above analysis indicates that majority of the employees agree that the information
they receive and the knowledge is up to date and accurate.

76
9.New ideas and knowledge are frequently applied and recorded for future use.

Responses Respondents Percentage

Strongly Disagree 0 0
Disagree 0 0
Mildly Disagree 2 4
Mildly Agree 10 20
Agree 22 44
Strongly Agree 16 32

0 Percentage

0
4
20 Strongly Disagree
32
Disagree
Mildly Disagree
Mildly Agree
Agree
Strongly Agree
44

The survey of respondents reveals the following:

4% of the employees mildly disagree with the fact that ideas generated are recorded
for future use. 20% of the employees agree with the fact, 44% agree and 32% strongly
agree with the statement.
We can say that majority of the employees agree with the fact that new ideas are
stored.

77
10.Brainstorming and other similar techniques are often used to generate and
record new ideas and knowledge.

Responses Respondents Percentage

Strongly Disagree 0 0
Disagree 0 0
Mildly Disagree 4 8
Mildly Agree 8 16
Agree 23 46
Strongly Agree 15 30

0 Percentage

0
8

30 Strongly Disagree
16
Disagree
Mildly Disagree
Mildly Agree
Agree
Strongly Agree
46

The survey of respondents reveals the following:

8% of the employees feel that there is a possibility of brainstorming sessions as they

mildly disagree, 16% mildly agree with the fact while 46% of the employees agree
and 30% of the employees strongly agree to the above fact.
Thus we could conclude that majority of the respondents agree with the
company policy of having brainstorming activities which unleashes the creative
genius in them.

78
11.Information from many sources is stored in an integrated manner and cross –
referenced facilitating better communication and decision-making.

Responses Respondents Percentage

Strongly Disagree 0 0
Disagree 2 4
Mildly Disagree 2 4
Mildly Agree 14 28
Agree 20 40
Strongly Agree 12 24

Percentage
0
4
4
24 Strongly Disagree
Disagree
28 Mildly Disagree
Mildly Agree
Agree
Strongly Agree
40

The survey of respondents reveals the following:

4% of the respondents disagree when asked about the manner in which the
information is stored in the organization for better communication, 4% mildly
disagree with the statement and 28% mildly agreed to it.
40% agreed to the fact that information is stored for easy retrieval and 24% strongly
approved the declaration.
We could therefore say that in the organization the information from different sources
is stored and cross-referenced in such a manner that it’s facilitates better
communication and easy decision making.

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12.Electronic and / or non-electronic collaboration, teamwork and cooperation
are a part of doing business.

Responses Respondents Percentage

Strongly Disagree 0 0
Disagree 2 4
Mildly Disagree 2 4
Mildly Agree 9 18
Agree 28 56
Strongly Agree 9 18

Percentage
0
4

18 4
Strongly Disagree
18
Disagree
Mildly Disagree
Mildly Agree
Agree
Strongly Agree
56

The survey of respondents reveals the following:

4% of the entire respondents surveyed disagree with the fact that there is electronic or
non-electronic collaborations, teamwork and cooperation are part of the business
process.
4% mildly disagree and 18% mildly agree with the statement.
While 56% of the employees agree and 18% strongly agree with the above fact.
We can analyze that, the most employees have the cooperative attitude among
themselves, which is a good sign for the organization as it reflects its organization
climate.

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13.Information is stored and organized in a way that makes it intuitively easy and
quick
to locate.

Responses Respondents Percentage

Strongly Disagree 0 0
Disagree 0 0
Mildly Disagree 3 6
Mildly Agree 15 30
Agree 22 44
Strongly Agree 10 20

0 Percentage

0
6
20
Strongly Disagree
Disagree
30
Mildly Disagree
Mildly Agree
Agree
Strongly Agree
44

The survey of 50 respondents reveals the following:

6% mildly disagree with the statement that information is stored and organized in a
way that makes it intuitively easy and quick to retrieve.
30% mildly agree and 44% agree with the above fact.
20% of the employees strongly agree with the statement. Majority of the respondents
agree with the fact and feel that everything around them is organized.

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14. Advanced technologies, such as data warehousing, mining and modeling are used
to leverage data and information for strategic and operational decision-making.

Responses Respondents Percentage

Strongly Disagree 0 0
Disagree 0 0
Mildly Disagree 4 8
Mildly Agree 10 20
Agree 29 58
Strongly Agree 7 14

0 Percentage

14 8
Strongly Disagree
20 Disagree
Mildly Disagree
Mildly Agree
Agree
Strongly Agree
58

The survey of respondents reveals the following:

8% of the people mildly disagree with the fact that in the organization they use and
utilize advanced technologies to solve problems and make decisions.
20% of the employees mildly agree, where as 58% of the employees agree with the
statement.
14% of the employees strongly agree to the fact of using advanced tools.
The above analysis shows that the organization takes help of advanced tools in
decision-making as majority of the people responded.

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 15.Document stored on an organizational server or intranet contains timely and
useful knowledge for our job responsibilities.

Responses Respondents Percentage

Strongly Disagree 0 0
Disagree 0 0
Mildly Disagree 3 6
Mildly Agree 9 18
Agree 23 46
Strongly Agree 15 30

0 Percentage

0
6

30 18 Strongly Disagree
Disagree
Mildly Disagree
Mildly Agree
Agree
Strongly Agree
46

The survey of respondents reveals the following:

When asked whether the organization’s servers contain timely and useful knowledge,
6% mildly disagreed with the query, while 18% mildly agreed with the fact. 46% of
the employees agreed that the server does provide some information and 30% strongly
agreed with the statement.
This survey shows that 76% of the respondents agree with the fact that the
organization’s servers contain timely and useful knowledge.

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16.Incentives are in lace that motivates staff to share knowledge.

Responses Respondents Percentage

Strongly Disagree 1 2
Disagree 0 0
Mildly Disagree 4 8
Mildly Agree 9 18
Agree 25 50
Strongly Agree 11 22

Percentage
2
0
8
22
Strongly Disagree
18 Disagree
Mildly Disagree
Mildly Agree
Agree
Strongly Agree
50

The survey of respondents reveals the following:

2% of the employees strongly disagree and 8% mildly disagree when asked if there
are any incentives available to motivate the staff.
18% of the employees mildly agree with the fact, while 53% agreed and 22% strongly
agreed with the above statement.
We can analyze that majority of the employees accept that incentive plan is
the one that motivates the employees, so it should be implemented.

84
17. Expert systems and knowledge bases are used to aid in decision-making.

Responses Respondents Percentage

Strongly Disagree 0 0
Disagree 1 2
Mildly Disagree 6 12
Mildly Agree 10 20
Agree 18 36
Strongly Agree 15 30

Percentage
0
2
12
30 Strongly Disagree
Disagree

20 Mildly Disagree
Mildly Agree
Agree
Strongly Agree
36

The survey of respondents reveals the following:

20% of the employees accept that expert systems and knowledge bases are there to aid
decision-making. 36% agree with the fact and 30% strongly agree.
When coming to the other side of the scale 2% disagree and 12% mildly disagree with
the statement.
Majority of the responses say that there is an expert knowledge system, which is used
to aid decision-making process.

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18.Knowledge based helps in creative products, growing new ideas and applying
new technologies.

Responses Respondents Percentage

Strongly Disagree 0 0
Disagree 0 0
Mildly Disagree 0 0
Mildly Agree 13 26
Agree 21 42
Strongly Agree 16 32

0 Percentage
0
0
26 Strongly Disagree
32
Disagree
Mildly Disagree
Mildly Agree
Agree
Strongly Agree
42

The survey of respondents reveals the following:

26% of the employees mildly agree with the statement, 42% agree and 32% strongly
agree with the statement.
The above analysis shows that entire respondents agree with the fact that knowledge
based helps in creative products, growing new ideas and applying new technologies.

86
19.Knowledge management is useful for change management.

Responses Respondents Percentage

Strongly Disagree 0 0
Disagree 1 2
Mildly Disagree 2 4
Mildly Agree 4 8
Agree 30 60
Strongly Agree 13 26

0 Percentage

2
4
8
26 Strongly Disagree
Disagree
Mildly Disagree
Mildly Agree
Agree
Strongly Agree
60

The survey of respondents reveals the following:

2% of the respondents disagree with the query and 4% mildly disagree.

8% of the employees mildly agree with the statement.
While 60% of the employees agree with the above question and 26% of the
employees strongly agree to the question.
The above analysis reveals that majority of the respondents agree with the fact
that knowledge management is useful for change management.

87
20.Knowledge management focuses on customers and business strategy.

Responses Respondents Percentage

Strongly Disagree 0 0
Disagree 0 0
Mildly Disagree 0 0
Mildly Agree 9 18
Agree 22 44
Strongly Agree 19 38

Percentage

0
18
Strongly Disagree
38 Disagree
Mildly Disagree
Mildly Agree
Agree
Strongly Agree
44

The survey of respondents reveals the following:

18% of the respondents mildly agree with the query, while 44% agree and 38%
strongly agree with the fact.
From this survey we can clearly see that entire respondents agree with the fact that
knowledge management focuses on customers and business strategy.

88
Conclusions
&
Suggestions

89
 Conclusions and suggestions

Knowledge management helps the organization to move faster towards its

objective, as it makes activities carried out in business more effective and productive.
Knowledge advantage is sustainable because it generates increasing returns and
continues providing more advantages.

Before starting to create and manage knowledge within the organization, it

should see to it that the culture really suits it. The experts may not be very eager to
share their knowledge with their subordinates in order to maintain their influence and
important impact. It is therefore the responsibility of the Management to support the
Knowledge Management activities, without which it would be a total waste of time
and money spent. The politics played within the organization is a hurdle, which can
hinder the knowledge sharing activities. Hence the top Management must ensure that
a conducive environment for knowledge managing process is created within the firm.

One more key activity of Knowledge Management is knowledge retention.

Companies are aware of the fact that a loss due to leaving of one key person, whose
knowledge is extremely important, can be beyond expectation. Thus the company
must strive to retain the knowledge of the organization by retaining knowledgeable
employees.

Findings of the research work are as follows

 Generation of new ideas and knowledge activities is encouraged, frequently

applied and recorded for future use. Brainstorming is also encouraged at
Dr. Reddy’s.

90
 An electronic knowledge base exists to store new ideas, knowledge, solutions
and best practices.

 The employees feel that collective experience, expert system and knowledge
bases help them in making decisions.

 Most employees agree that job analysis is performed frequently to determine

the job description and job specification. An intranet portal exists from where
information relevant to job requirement may be retrieved.

 The organization takes help of advanced tools in decision-making and

information from many sources and these are stored in an integrated manner
with cross-reference to facilitate better communication

 Documents are shared and stored on an organizational server, which contains

timely and useful knowledge.

 Most employees strongly agree that experience is highly valued and incentive
plan is the one, which motivates the employees.

 The employees agree that the information they receive and the knowledge is
upto date and accurate and is stored and organized in a way that makes it
intuitively easy and quick to locate.

 Most employees have the cooperative attitude among themselves, which is a

good sign for the organization as it reflects on the organizational climate.

 Knowledge Management is useful for Change Management and focuses on

customers and business strategy.

 Team members are not getting token of appreciation for success of project and
one observes lack of effective communication within the department.

 Lack of transparency and openness of organizational issues.

 Lack of recognition for the work done by the employees and personal bias
towards the employees is demoralizing employees satisfaction to a certain
extent.

 Information sharing with the shop floor people is not satisfactory and decision
making is not delegated clearly depending upon time.

 Time management regarding work schedules is not good and no accessibility

on intranet facility. This is causing work stress upon employees.

 Autocratic leadership is high in nature. This is creating coordination problem

between superiors and subordinates. This is also influencing decision-making
in the organization.

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 Exit interview is not properly conducted and because of this knowledge drain
is not being properly interpreted

 The organization provides the magazines like

ELIXIR
ASPIRE
TEJAS

It also provides the Pharmaceutical news only for the higher cadre employees (HR
Manager and Head of the Departments).

Suggestions

 Frequent interactions among the team leaders and team members have to be
adopted. Transparency in the organizational matters provides the employees
needed and necessary information for performing their jobs in the desired
manner, which leads to the ego satisfaction of the employees resulting in
congenial relations.

 Open house interaction programs have to be continued and awareness

regarding these programs should be improved.

 Frequent interactions among all departments are required to improve

coordination among them.

 Sensitivity training at regular intervals is needed in order to improve human

relation skills among the employees.

 “ Quality of Work Life measures ” should be communicated to all the

employees. Employees should be trained to inculcate a habit of using these
measures effectively.

 Case studies analysis, Forced field analysis & Brainstorming should be

practised by leader to build awareness and creative thinking.

 Effective Knowledge Management should give rise to enhancement of

knowledge and skills to international level to face the stiff challenges.

 There is a need to promote human learning, KM favours workers who have

not only higher skills and educational qualifications but also the ability to
acquire knowledge in their domain.

92
 Given the necessary Knowledge training, workers can also unbundle and
rebundle their skills

Appendix

 Questionnaire

93
 QUESTIONNAIRE

You are a part of a selected group chosen to respond to this questionnaire. Please
respond freely with your views on the prevalent atmosphere of knowledge
Management activities in your work atmosphere, this would help us in obtaining a
clear picture of the organization and in planning for a better future.

Your Responses will be kept confidential.

INSTRUCTIONS: Please respond to the below questions on a scale of 6 to 1, where

6 mean that you STRONGLY DISAGREE, 5-DISAGREE, 4-MILDLY DISAGREE,
3-MILDLY AGREE, 2- AGREE, 1-STRONGLY AGREE.

1. The generation of new ideas and knowledge is highly valued.

6 5 4 3 2 1

2. Job analysis are frequently performed to determine job duties and requirements.

6 5 4 3 2 1

3.An electronic knowledge base exists to store new ideas, knowledge, solutions
and best practices.

6 5 4 3 2 1

94
 4.Documents are proactively shared with employees.

6 5 4 3 2 1

5.The collective experience of employees is an integral part of decision making .

6 5 4 3 2 1

6.Experience is highly valued.

6 5 4 3 2 1

7.An organizational intranet portal exists where information and knowledge

relevant to job requirements may be retrieved.

6 5 4 3 2 1

8.The information and knowledge u receive is accurate and up-to-date.

6 5 4 3 2 1

9.New ideas and knowledge are frequently applied and recorded for future use.

6 5 4 3 2 1

10.Brainstorming and other similar techniques are often used to generate and
record new ideas and knowledge.

6 5 4 3 2 1

11.Information from many sources is stored in an integrated manner and cross –

referenced facilitating better communication and decision-making.

6 5 4 3 2 1

12. Electronic and / or non-electronic collaboration, teamwork and cooperation are

a part of doing business.

6 5 4 3 2 1

95
 13.Information is stored and organized in a way that makes it intuitively easy and
quick to locate.

6 5 4 3 2 1

14. Advanced technologies, such as data warehousing, mining and modeling are
used to leverage data and information for strategic and operational decision
making.

6 5 4 3 2 1

15. Document stored on an organizational server or intranet contains timely and

useful knowledge for our job responsibilities.

6 5 4 3 2 1

16.Incentives are in lace that motivates staff to share knowledge .

6 5 4 3 2 1

17. Expert systems and knowledge bases are used to aid in decision making.

6 5 4 3 2 1

18.Knowledge based helps in creative products, growing new ideas and applying new
technologies.

6 5 4 3 2 1

19.Knowledge management is useful for change management.

6 5 4 3 2 1

20.Knowledge management focuses on customers and business strategy.

6 5 4 3 2 1

96
 Bibliography

PerfECT
Elixir
Tejas
Aspire
Pharmaceutical news
Knowledge management-
ICFAI Journal

Websites

www. HR-guide.com
www.drreddys.com
www.myreddys.com

97