A PROJECT ON

“PERFORMANCE MANAGEMENT”

With reference to

Mass Pharma Pvt. Ltd.

A project report submitted to

Dr. Basharat

Department of Psychology

In partial fulfillment for the Award of the Degree of

MS Industrial & Organizational Psychology

2018-2020

Submitted by

Aneeqa Hussain

Menal Butt

Department of Psychology

Government College University, Lahore

 ACKNOWLEDGMENT

I am heartily thankful to Mr Iftikhar Ahmed, Director HR of Mass Pharma Pvt. Ltd. for

taking out time for us and providing the required information which helped in the

accomplishment of the project. Special thanks to Mr Usman Ahmed, Manager Regulatory

Affairs at Mass Pharma Pvt. Ltd. for providing reference for this project.

Thanks to Mr Dr Basharat, under the supervision of whom, I was able to carry out this

project.

Aneeqa Hussain

Menal Butt

MS I/O Psychology

2018-2020
Table of Contents

Chapter 1 Introduction

1.1. Company Profile

1.2. Need for the Project

1.3. Importance of the Project

Chapter 2 Goal Setting

2.1. Concept of Goal Setting

2.2. Challenging Goals 2.3. Trainings & Development

Chapter 3 Performance Appraisal

3.1. Concept of Performance Appraisal

3.2. Performance Appraisal Process

3.3. Appraisal Duration

3.4. Purpose of Performance Appraisal

3.5. Supervisors/Management

Chapter 4 Conclusion

Suggestions
 CHAPTER 1

Introduction

Mass Pharma Pvt. Ltd. was founded in 1995 as a subsidiary of Khuwaja Group and the

manufacturing, sales and marketing of its pharmaceutical products in this company was initiated in 1997.

A joint venture between Mass Pharma (Pvt) Ltd. and Pharma Health Pakistan (Pvt) Ltd. for the

manufacturing of hormonal tablets, capsules, injectable and topical medicines has recently been licenced.

Pharma Health Pakistan (Pvt) Ltd. is another subsidiary of the Khawaja Group and is a sister

concern of Mass Pharma (Pvt) Ltd. The company is the market leader in the field of dermatology and

serving the nation by leaps and bounds. The company has recently stepped foot into various other segments

and aims to perform similarly.

Mass Pharma’s management systems are certified by UKAS, one of the renowned certification

body in the world against International Standard ISO 9001:2008.

This certification is an evidence that the company follows a set of procedures that cover all key

processes in the business, monitors processes to ensure that they are effective, strict checking of outputs is
carried out for defects, with appropriate and corrective action where necessary, regularly reviewing

individual processes and the quality system itself for effectiveness and facilitates continual improvement.

The company started the manufacture of dermatological products in 2001.

Chief Executive of Mass Pharma Pvt. Ltd., Khuwaja Muhammad

Akram is also the president of Khuwaja Group of Companies along with

Pharma Health Pakistan Pvt. Ltd. He also has been Executive member of

Pakistan Pharmaceutical Manufacturers Association (PPMA).

He has received many awards on his performance and innovations in

the field including:

National Awards:

 Best President of the District 305 (1984-85, 1987-88)

 Best Club Award of the District 305 (1984-85)

 Best Project Award of the District 305 (1984-85)

 19Awards given to the Club in the convention (1985)

 Best Region Chairman (1995-96, 1998-99)

 Best Rebuilding Lion (1996-97)

International Awards:

 25 Years of Service Charter Monarch Chevron Award

 Membership Extension Award 10 times

 Best Membership Extension Award for introducing 19 new clubs members single handedly (1984-

85)
 100% President Award thrice (1984-85, 1987-88, 2001-2002)

 Extension Awards

 Guiding Lion Awards

Jahanzeb Akram is the Vice President of Mass

Pharma Pvt. Ltd. His achievements and upstanding have

taken the organization to a next level. He has brought

reforms in almost all the department of the company so

claiming the success with his name.

He has been a graduate from UK and his ability and qualification both took him to his position.

The quality of company’s products are claimed to be according to British and American

Pharmaceutical regulations due to which a higher credibility and trust ratio have been developed with

the name of the organization.

The organization has received a level of trust by their customers and that’s the reason why, this

company is on 35th rank among international pharmaceutical companies and on 18th number in the race

of national pharmaceutical companies.

Besides its name, the team of the organization is consistent and stuck together willingly

developing a family of colleagues. The leaders are said to be cooperative and encouraging due to

which, the team finds pleasure in working in such environment.

The profit of company also benefits the employees along with the leaders with proper

percentage of the profit distributed among them.

The company has received various awards in the field at government level including:
 Lahore

Chamber of

Commerce &

Industry

(LCCI)

Achievements

Award 2007

received by

Mass Pharma

Pvt. Ltd.by Prime Minister of Pakistan (of respected time), Mr Shaukat Azeez.
 Lahore

Chamber of

Commerce &

Industry

(LCCI)

Achievement

Award 2009

received by

Mass Pharma Pvt. Ltd. by then Prime Minister of Pakistan, Mr Yousaf Raza Gillani.

Lahore Chamber of Commerce & Industry (LCCI)

Achievement Award 2011 received by Mass

Pharma Pvt. Ltd. by then Prime Minister of

Pakistan Mr Yousaf Raza Gillani.

Mass Pharma’s dedicated staff has worked

determinedly to achieve highest cGMP standards

and ISO 9001:2008 certification, and to make sure that the company retains them.
 Mass Pharma is one of the few National Pharmaceutical Companies who have been awarded with

European Certification. It was

another milestone in the history of

Mass Pharma that a European based

pharmaceutical company joined

hands with Mass Pharma for the

production of its world renowned

products and that too after confirming

its inter-national standard of

production facility and quality controls in 2001.

With the time, Mass Pharm Pvt. Ltd. emerged as the fastest growing business orgnaization among

pharmaceutical companies with a huge number of export orders as well as certification and national

awards.

The price range of mass pharma is set to be affordable so that a patient from any economic class

could buy that without problem.

Mass Pharma Pvt. Ltd. includes a number of products under its label; few of which are as follow:
 There are two basic sections:

1. Sales

The marketing requirement is set by how is the requirement of sales and how much should be

produces. All medicines are not needed all the time, it depends on situation and climate. Mass Pharma Pvt.

Ltd has vast marketing with CEO, Managers, and Country Managers working for a better level of the

company. There is a split of sections according to areas:

i. Provincial basis

ii. Export related

The provincial section includes Sindh and Punjab heavily and then Balochistan also. There is very

little work in Khyber Pakhtunkhuwan (K-P) because, instead of exporting the products, it gets smuggled

with no record of receipts of products sent abroad and inquiry asks the company about how it went there if

have no record. Therefore, Mass Pharma Pvt. Ltd. doesn’t work very much in that region. However, it

works massively in Karachi, which is a hub and Balochistan also.

The target selling depends as it is divided into monthly, semi-annual and annual basis therefore,

varying in the target sales.

2. Production

Before production, a forecast designed by the team about the need of a medicine is sent to the

management as medicines highly depends on the seasons. E.g. a medicine fir fever and influenza may not

be required in summer or spring but it is heavily demanded during winters and autumn.
 The total production capacity of the company is maximum 2 lac tablets per day. There are different

batches which are not less than 50000 tablets and 100000 injections. Soft gel capsules are also made under

the label.

Process of Production: The formula of medicine is forwarded to GM which is according to the

British and American Pharmaceutical system and it is well compliant with them. During international

inspection, the company’s formulas are approved and appreciated and it is claimed by Mr Iftikhar that there

medicines are not less in quality than that of GSK.

There are two basic material used for the production:

i. Active material: This is the active material which is the actual medicine.

ii. Coating material: The non-active material which is used for molding and coating the medicine

for packing. It gives medicine a shape. There is a very sensitive ratio of both and there is need for them to

not clash otherwise, the medicine is a disaster. A medicine from some other country caused deaths of many

because its coating material exceeded and clashed with active material.

Production process is mainly machine based however, then comes the packing which is manually

done by human staff. It is a technical task. There has to be seen the unit packing when some medicines

have 7 tablets in packing, some has 9, others have 30 also but mostly 10tablets in packing. The packing has

to be careful too because it needs to be packed to respective boxes with relative prescription. Sample

packing has to be checked too.

Economic Pressure: No manufacturing cost is there because 90% of the raw material is imported

and the cost depends upon the dollar fluctuation also. The material once bought of 80 dollars will still be of

80 dollars but with higher rupee value.

 Government dictates the prices of products after receiving the formula of medicine. Transaction

Price (TP) Value is set keeping a margin of profit and loss.

1.2. Need for the Project & Objectives

The project was carried out in order to observe, know and understand the process of performance

appraisal and reward system for the employees of the organization. The few aims and objectives of the

project included:

 To study the need and importance of performance appraisal in organization.

 To study the performance appraisal implementation in Mass Pharma Pvt. Ltd.

 To summarize and find certain suggestions for the importance of performance appraisal.

1.3. Importance of the Project

Appraising the performance of individuals, groups and organizations is a common practice of all

societies. While in some instances these appraisal processes are structured and formally sanctioned, in

other instances they are an informal and integral part of daily activities. Consciously or unconsciously

evaluate our own actions from time to time. In social interactions, performance is conducted a systematic

and planned manner to achieve widespread popularity in recent years. Performance appraisal is essential to

understand and improve the employee's performance through human resource development. In fact,

performance appraisal is the basis fore HRD. It was viewed performance appraisal was useful to decide

upon employee promotion / transfer salary determination and the like. But the recent developments in

human resources management indicate that performance appraisal is the basis for employee development.

Performance appraisal indicates the level of desired performance level, level of actual performance and the

gap between these two. This gap should be bridged through human resources development techniques like

training executive development etc.

 According to the past survey it was noticed that the performance appraisal system in this company

was not up to the mark. Hence there would be scope for giving few suggestions as per my knowledge to

improve the performance appraisal system which was quite essential for the better performance of the

employees.
 CHAPTER 2

Goal Setting

In order to achieve anything thought in organization level or individual level, on daily basis or

collective basis; goal setting is the basic step.

2.1. Concept of Goal Setting: Goal setting involves the development of an action plan designed to

motivate and guide a person or group toward a goal.

Studies by Edwin A. Locke and his colleagues have shown that more specific and ambitious goals

lead to more performance improvement than easy or general goals. The goals should be specific, difficult,

and have time constraints. As long as the person accepts the goal, has the ability to attain it, and does not

have conflicting goals, there is a positive linear relationship between goal difficulty and task performance.

The theory states that the simplest most direct motivational explanation of why some people

perform better than others is because they have different performance goals. The essence of the theory is

fourfold. First, difficult specific goals lead to significantly higher performance than easy goals, no goals, or

even the setting of an abstract goal such as urging people to do their best. Second, holding ability constant,

as this is a theory of motivation, and given that there is goal commitment, the higher the goal the higher the

performance. Third, variables such as praise, feedback, or the involvement of people in decision-making

only influences behavior to the extent that it leads to the setting of and commitment to a specific difficult

goal. Fourth, goal-setting, in addition to affecting the three mechanisms of motivation, namely, choice,

effort, and persistence, can also have a cognitive benefit. It can influence choice, effort, and persistence to

discover ways to attain the goal.

 2.2. Challenging Goals: The few challenging goals that the organization had to cope with included

various factors, few of which are:

 The expiry date of a product depends upon the type of product. Products vary to maximum

of 3 years of expiration date. The government has set a ratio that if after expiry, the active

material is present to up to 97.7%, then it is useable. When the stock gets expired in

custody of retailer, it is given back to distributors and then to the company which is then

replaced with new stock and the expired stock is burnt. If the return rate is more than 2%,

then it is loss for the company and if it is below the number, its expected and ready-for loss

situation.

 Power supply is another obstacle in achieving the goal. The fluctuation of electricity in the

country causes major issue as there has to be a complete arrangement for a backup

otherwise the material can be wasted. Suppose, for a long time, there is no load shedding

and suddenly, it powers out; such situation is abrupt and to cope with it by putting generator

on, keeping machinery intact etc, is a challenge. The rate of electricity getting higher also

challenges.

 Water issue in Pakistan is also for companies like proper water filtration has to be carried

out repeatedly in order to get a proper required state of water. This state is bitter in taste

with no minerals and vitamins in it and definitely not drinkable. There are two filtration

plants in the company and for them, proper staff is appointed for supervising on shift basis

as it is mostly all time process.

 Political situation also manages to affect the way to achieve goal. As per told by Mr

Ikftikhar Javed, Director HR of Mass Pharma Pvt. Ltd., former Chief Minister of Pakistan,

Shehbaz Sharif once gave a statement against the company putting an allegation that it
 creates under quality products. However, the inspections already cleared the company. This

false allegation led to a major strike when over 30 orders from foreign countries were

cancelled believing that the minister itself is claiming wrong for the company, creating a

mistrust. However, they coped by sending samples to the clients and offering them free

stock if any of the sample is according to allegation. The samples were approved and no

such claim was confirmed, in fact rejected.

 Labor Cost: It includes all the employees working in an organization from managers to

administration, accountant, supervisors and every other one. There has to be proper check if

the requirement of labor is fulfilled or are less than required, which doesn’t happen usually.

However, there also has to be proper process if the labor appointed on work is more than

the labor required for the work. The supportive staff of labor includes engineering staff,

accounting staff, financial staff, etc. The engineering staff is of very much importance as

the machinery which is a lot expensive and imported from giant countries have to be

checked time to time. There is a machine HPLC machine which can create a “fingerprint”

of the medicine. When the medicine is kept in the machine, it scans it to the deepest. To

assure the quality, this machine has to work perfectly. Because it matter to GMP etc with

0.001% margin.

 Climate change affects the expiration of a medicine. Sometimes, if exposed directly to sun

or kept in heat while storage can lead to the expiration of medicine even if it has expiry of

more time.

 Holidays lead to lowering the production of unit. Recently, there was a whole week off for

Eid and a million product were not produced due to that. Such factors also affect the

company
 2.3. Training & Development

When hired an employee, the candidate see things like salary, bosses, equipment he will have,

bonuses and allowance, transport facility, holidays and other such relaxation in the job however, the

interviewer see what if the candidate is confident and eligible for the position or not. There is a 360-degree

administration process. The employees are hired on 6-month probation period.

During this probation

period, it is observed if he

works according to the job

specification or not as he is

given a job requirement

when he joins. With the

passage of time, a person

cannot stick to a single place

ofcorse.

The meeting of board is compulsory to be held twice a month and see what the company’s sales,

revenue and cost of manufacture was. The employee only know that he is given salary by the end of every

month but doesn’t know what company is doing for them like group-insurance, medical insurance,

allowances etc. and they don’t know what all this costs to company. Board appraisal also takes place every

month.

According to Mr Iftikhar Javed, when an employee is given job description, he is told;

“You are responsible to this man and these are responsible to you.”
 The trainings occur time to time in the form of general discussion as well as lectures. Proper

presentations are designed and classes are organized which include refreshment and casual environment.

The

courteous

environment

makes the

employees

to learn

more and

motivates

them for

further efforts he is to do. These trainings talk about their goal and the way to achieve the goal. E.g.The

production of unit last year in this time was 10.8million however, this time, it is 11.3million targeted.

Provisional profit & loss account develops for every target and expected margin of profit is set.

Besides product knowledge, qualification, physical and mental health; a candidate must have self

confidence that he can do it.

 CHAPTER 3

Performance Appraisal

Performance appraisal is the evaluation of performance and discussion of development as well as

the evaluation and appraisal of employees. This is the process with which an employee is labelled as good

or bad, given good points or negative points.

When an employee is hired, there is expectation with him because he is selected through a proper

channel with the evaluation of personality. Every company has a specific performance appraisal system

through which they evaluate their employees in specific duration. Mass Pharma Pvt. Ltd. claims of

appraisal on daily basis lightly, however, formally it is done monthly, semiannually and annually.

Appraisal duration: The appraisal is quarterly within department and semi annually to HR. The

good and bad points are handed over to employee and he has to accept or reject the points with proper

justification. .

Process: Then HR assess the Employee of the Month or Employee of the Year. The ones with

worst points are given chances for betterment again with penalties. Reason and causes of the performance

is investigated
 Formally, the department has to submit the report

of the department employees till 15th July for this year.

Then it will come to HR anf will be decided about reward

or penalty. Profit is divided into employees as percentage

of increament say 6%, 10% or more. If any employee is

not meeting the requirement for a longer period and

without any reason, then he is given a one month salary

and terminated. Reward sometimes include Umrah packages, grocery boxes, quilt distribution etc. It costs

less but marks a good and healthy psychological impact and he will get positive towards the organization.

Purpose: The purpose behind this performance appraisal process is to create a motivating

environment which will encourage the employees to work with more sincerity and effort. Such acts create

very good impact and they also tend to engage the employees and leaders on good note. This is all in

benefit of the organization because, more the employee will struggle for best, and eventually he is working

for the organization goodwill. So such tactics are used by organization for betterment.

Employees & leaders: The relationship between employees and leaders is tricky. Leaders include

supervisors, managers, and head of departments also. They don’t usually teach the employees but trainees

have and in and out interview in which he can tell better about how was his experience. On the basis of his

learning and what he says, it is decided how the leaders trained his employee. Furthermore, the employees

can contact the unions also because they are formed for such reason. If there is no union, it can lead to

admin managers and can discuss “grievance management”.

Serious matters are sent to HR which Admin managers can’t handle. If the matter can’t be sorted

without without the consent of higher authorities, then a proper panel is designed to investigate and then to

take action on the matter.

 CONCLUSION

The director HR Mr Iftikhar Javed joined in 2008 and working now as HR director. He along with

his assistant works with all his effort for better employees. The company is based on two main sections

included Sales and Production. The company has a complete job description for its new hiring so that it

may not face any issue later on. The production is dependent on the demand and forecast about the sale. All

medicines are not used throughout the year, it depends on seasons. The production capacity is maximum 2

lac tablets per day and batches include minimum 50000 tablets with different packages of package of 7, 10,

30 tablets. The injections and soft capsules are also part of company’s production. The company is verified

by international standards and its quality check is very strict. The measures are according to British and

American pharmaceutical laws and that’s the reason, company receives a big export orders. The different

factors affect company’s production incuding casual leaves, general holidays, public holidays, budget,

price increase of petrol or dollar rate rise. The raw material is exported and dollar fluctuation affects the

profit rate as well. Government decides the TP Vlaue based on formula. Other influential factors incude

expiry, labor cost, machinery cost, inspections, politics, water issue, power issue. The government

inspection is a difficult matter to be faced too. For assurance of the quality, proper team is hired and

working continuously. The company hires individual and tell them to whom he will respond and who will

respond to him. With this detail, the employee hired will tend to work according to specified job. Mass

Pharma Pvt. Ltd. is on 18th rank nationally and 25th rank internationally. The performance appraisal process

is monthly, semiannually and formally its annually. Employees are encouraged or trained according to

evaluation report. They are given their evaluation in form of good or bad points and they have to reject or

accept them accordingly. The employee with good scoring throughout is given title of Employe of the

Month/Year or so on. Rewards and penalties are also a part of this process. The best and better employees
are rewarded with percentage of profit and their salary. The worst ones are given penalties for

improvement. Trainings are held in form of lectures to create a casual environment among the staff and

also to tell them about new amendments or goals. Goal is set every year for better percentage of

production. HR tries to solve the issue on its own and if matter is more serious, then a group interview is

made for investigation which includes the executives and HR director. Summarizing all, The company

takes care of its employee in different ways to create a psychologically healthy environment and that’s

where, an employee will be eager to work in. However, there are few suggestions which are derived on the

basis of overall research done on the project:

 It came to our knowledge that the company sales same formula to that of any multinational

company and on lower rates, however, because of the name and trust, people tend to buy those

more. The company should create a name with proper advertisement on local as well as national

channels.

 The company needs to have a PR for managing all matters on different levels.

 The advertisement can create a good impact of the company, therefore, the social issues should be

pinched and the product be nailed in the place so that, the public will think that they can have a

medicine which they buy of 100 rupee instead of 200 rupees.

 These days, the current government is working on valuing own currency and companies and many

companies have jumped into the pool for the reason. They ask people to support their national

companies instead of international companies so that it can strengthen the rupee value. Mass

Pharma Pvt. Ltd. should also join the hands and encourage public to support national companies.

 Create mutual trust based advertisement.

 Share more samples to hospitals and clinics.

 Ask employees to create a chain of people with name of company recognized easily.
 Ask pharmacies to refer the company’s products.

 Ask clinics and doctors to refer the company’s products.

 Highlight the matter of Mass Pharma Pvt. Ltd. ‘s standards according to international standards.

 Go with the trend and use social media to raise company’s name among society.

 HR department must come up with innovative ideas for the company’s good name.

 Also, organize stalls and awareness handouts in medical colleges.

REFERENCE

Mr Usman Ahmed, Manager Regulatory Affairs Mass Pharma Pvt. Ltd. [Cousin brother of Aneeqa

Hussain]

Mr Iftikhar Javed, Director HR Mass Pharma Pvt. Ltd.

Mass Pharma Pvt. Ltd. Official Facebook Page

https://www.facebook.com/MassPharma/about/?ref=page_internal

Drug Information System

http://www.druginfosys.com/productlist.aspx?companycode=114

Mass PharmaOfficial Website

http://masspharma.com

Pharma Health Pakistan Pvt. Ltd. official Website

https://www.pharmahealth.com/our-team/