This is a case study of Square Pharmaceuticals Limited, Bangladesh. In the report I have analyzed the organization from the perspective of its ‘Performance Management System’ and how the organization uses its ‘Teams and Groups’ effectively. In my analysis I have used 2 different frameworks to analyze the two themes in question. One of them is the ‘Performance Management Systems Framework’ (Appendix 1, Fig 1) developed by David Otley & Aldonio Ferreira in 2009. The other is the Work group effectiveness framework by Campion et al. in 1993 (Appendix 1, Fig 2). The data used to evaluate the organization is mostly primary data those I have observed during my work in the organization.
SQUARE Pharmaceuticals Limited is the biggest pharmaceutical company in Bangladesh. It has been in the 1st position in terms of market share and growth among all companies since 1985 (Square Pharmaceuticals Ltd. 2010). It was formed in 1958 and in 1991 it was enlisted as a public limited company in Bangladesh Stock Exchange. The sales turnover was US$ 107.91 million from April 2006 to March 2007 that represented a 16.92% market share and a growth rate of about 23.17% (Square Pharmaceuticals Ltd. 2010).
Square pharma is one of the top pharmaceutical product exporters of Bangladesh. It has 3564 employees, 3 subsidiary and 4 associate companies in Bangladesh (Square Pharmaceuticals Ltd. 2010).
Performance Management of Staff and Personnel:
Performance management is directed towards improving the organizational, functional and the individual performance by linking it to the specific objective of each functional area that aims towards achieving the overall organizational objectives (Stone 2005, p 276).Performance management is a broader concept than the traditional concept of Performance appraisal that measures how well a job is being performed by an employee that is assigned to him against a set of criteria like achievements or productivity (Stone 2005, p 278). Heathfield expresses that a performance management system is not an annual performance review but a complete system that supports the creation of a reliable, motivated and dedicated set of employees (n.d.). In today’s competitive world, it is important that the work objectives of the employees are properly aligned with the organizations objectives. Storey and Sisson (1993) believes that performance management is an interrelated set of policies and practices that concentrates on achieving organizational objectives by improved individual performance (cited by Stone 2005, p 277). According to McNamara, the benefits of performance management are as follows (n.d.): • PM focuses on results rather than activities. So, in traditional performance appraisal an employee filling out forms manually may get high marks but on PM system that employee may be seen as inefficient as not supporting the company’s overall objective of automation. • Directs employee activities and processes towards the ultimate objectives of the company. • Cultivates the long term vision of the organization and sets up processes and measurement system according to that. • Provides a reliable base for comparison of employees and processes.
Performance Management at Square Pharmaceuticals Ltd.:
I am going to analyze Square Phamaceuticals Limited’s current performance measurement of staff and personnel by using the ‘Performance Management Systems Framework’(Appendix 1, Fig 1). This framework is developed by David Otley and Aldonio Ferreira in 2009. This framework is an extended version of Otley’s previous performance management framework developed in 1999. Otley & Ferreira (2009) suggests that this framework puts more emphasis on managerial activities by accommodating managerial activity in the control system that was previously more departmental based (p 266). Vision and mission: The long term vision and mission of the company should be clearly stated and conveyed...