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Executive Summary
Pharmaceutical industry is one of the largest industries in our country. Every year a huge amount foreign currency comes from this sector. Square Pharmaceuticals Ltd., the flagship company, is holding the strong leadership position in the pharmaceutical industry of Bangladesh since 1985 and is now on its way to becoming a high performance global player. It was established in 1958 and converted into a public limited company in 1991. The sales turnover of SPL was more than Taka 5 Billion (US$ 90 million) with about 15% market share (April 2003 March 2004) having a growth rate of about 16%. Besides fulfilling domestic demand it exports a huge amount of drugs in abroad. It is now exporting medicine in 20 countries. It has achieved the trust of the domestic and foreign people. SQUAREs Mission is to produce and provide quality &innovative healthcare relief for people, maintain stringently ethical standard in business operation also ensuring benefit to the shareholders, stakeholders and the society at large. As a very large and formal company Square uses different management practices in their corporate world. It does the works of planning, organizing, leading and controlling. Square Pharmaceuticals Ltd. follows a systemic way to take a particular decision. Based on the present & previous available data and information the decision is made, focusing & predicting the future consequences. The Planning mechanism of Square involves focusing on the goal and developing the overall strategy for achieving the goal. Strategy involves long term decision making to get a long term benefit. We did SOWT analysis of the Square. Square Pharmaceuticals Ltd. has

many things to its credit as strengths while like any other company in the same industry has some weakness. Square is always abreast of the market trend and proactive to adopt any market changes and explore opportunities. Square divides works to be done into specific jobs and departments, assign tasks and responsibilities associated with individual jobs, coordinate diverse

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organizational tasks, clusters jobs into units, establish relationship, formal lines authority, allocates and deploys organizational resources. Human Resource department plays an important role to develop the most efficient manpower for the Square. Skilled, efficient, dynamic manpower is one of the most desirable features of this organization. Every organization takes different initiatives so that the employees can perform their jobs efficiently and effectively. Organizations motivate its employees and influence them so that they can do their best working in full swing. Leadership is the process of influencing a group toward the achievement of goals. As a successful company, Square Pharmaceuticals Ltd. practices leadership in its organization for moving the whole organization towards its goals. As controlling is a continuous process, Square follows a three step process for controlling: measuring actual performance, comparing actual performance against a standard, and taking managerial action to correct deviations or inadequate standards.

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Introduction
Origin of the report:
SQUARE Pharmaceuticals Limited is the largest pharmaceutical company in Bangladesh and it has been continuously in the 1st position among all national and multinational companies since 1985. The company plays a significant role in producing quality drugs in Bangladesh. It also plays a vital role in developing the socioeconomic condition of our country by paying a large amount of tax and taking participation in social activities. As a part of our study curriculum in BBA course, we have been assigned to conduct a study a organization finding management practices followed by the company. So we have selected Square for these characteristics.

Objectives of the report:

To achieve deep knowledge about the organization.
To fulfill the partial requirement of our course of Introduction to

Business & Management.

To evaluate the management activities of Square Pharmaceuticals

Ltd.
To analyze the existing structure, Strategy and planning mechanism,

decision-making process, Human Resource Management systems, Organizational behavioral environment, Leadership practices, Motivational tools and controlling systems of this company.

Methodology:
Information used in this paper we collected from related books, journals, periodicals & annual report etc. After that we went to the Square Centre and met with a managerial officer & discussed about the concerned rules &
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regulation relating to company systems. We also collected information from website.

Limitations:
There are some limitations that we have faced during preparing the report. The most obvious limitation is the unavailability of genuine information. Another limitation is lack of available information source related to this topic. Other limitation is our report is mostly text based.

A Preview of the Presentation:

In the following pages we sorted the parts in according with the text. At first we gave an introductory part of Square Pharmaceuticals Ltd. Then we presented the planning part which includes planning techniques and mechanisms, organizations strategies and strategically planning and the SWOT analysis of the organization. The next part includes the organizing procedures of Square. At the next part we discussed about the motivational tools and leadership practices in the Square. At the last section we discussed about the controlling procedure of the company, and then we terminated our report with a summary and conclusion.

Brief History of Square Pharmaceuticals Ltd.

SQUARE today symbolizes a name a state of mind. But its journey to the growth and prosperity has been no bed of roses. From the inception in 1958, it has today burgeoned into one of the top line conglomerates in Bangladesh. Square Pharmaceuticals Ltd., the flagship company, is holding the strong leadership position in the pharmaceutical industry of Bangladesh since 1985 and is now on its way to becoming a high performance global player. The company plays a significant role in producing quality drugs in Bangladesh. It also plays a vital role in developing the socioeconomic

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condition of our country by paying a large amount of tax and taking participation in social activities. SQUARE Pharmaceuticals Limited is the largest pharmaceutical company in Bangladesh and it has been continuously in the 1st position among all national and multinational companies since 1985. It was established in 1958 and converted into a public limited company in 1991. The sales turnover of SPL was more than Taka 5 Billion (US$ 90 million) with about 15% market share (April 2003 March 2004) having a growth rate of about 16%.

LOOKING BEYOND THE HORIZON

SQUARE Pharmaceuticals Limited has extended its range of services towards the highway of global market. She pioneered exports of medicines from Bangladesh in 1987 and has been exporting antibiotics and other pharmaceutical products. This extension in business and services has manifested the credibility of Square Pharmaceuticals Limited.

Vision
SQUARE Pharmaceuticals Ltd. views business as a means to the material and social wellbeing of the investors, employees and the society at large, leading to accretion of wealth through financial and moral gains as a part of the process of the human civilization.

Mission
SQUAREs Mission is to produce and provide quality &innovative

healthcare relief for people, maintain stringently ethical standard in business operation also ensuring benefit to the shareholders, stakeholders and the society at large.

Objective

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Its objectives are to conduct transparent business operation based on market mechanism within the legal & social frame work with aims to attain the mission reflected by its vision.

SQUARE Striving For

SQUARE strives, above all, for top quality health care products at the least cost reaching the lowest rungs of the economic class of people in the country. We value our social obligations.

It owes to its shareholders and strives for protection of their capital as well as ensures highest return and growth of their assets.

It strives for best compensation to all the employees who constitute the back-bone of the management and operational strength of the Company allowances, through bonus, a pay-package profit composing leave salary/wages, salary and participation,

superannuation & retirement benefits.

It strives for best co-operation of the creditors & debtors the banks & financial institutions who provide financial support when it need them, the suppliers of raw materials & suppliers who offer them at the best prices, the providers of utilities-power, gas & water etc. and the customers who buy its products & services by redeeming their claim in time by making prompt payment and by distributing proper product on due dates.

It strives for fulfillment of its responsibility to the Government through payment of entire range of due taxes, duties, and claim to various public agencies.

It also strives, as responsibilities citizen, for a social order devoid of malpractices, anti-environmental behaviors, unethical and corruptive dealings.

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It strives for practicing good governance in every sphere of activities covering inter alia not being limited to, disclosure & reporting to shareholders holding AGM in time, distribution of dividends and other benefits to shareholders, reporting/dissemination of price sensitive information, acquisition of share by insiders, recruitment & promotion of staff, procurement & supplies, sale of assets etc. all that directly and indirectly affect the interest of concerned groups the shareholders, the creditors, suppliers, employees, government and the public in general.

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Decision making procedure

Square Pharmaceuticals Ltd. follows a systemic way to take a particular decision. Based on the present & previous available data and information the decision is made, focusing & predicting the future consequences. Plans have different alternatives in order to improve future performance. The respective managers of different departments/divisions scrutinize those plans and best of them are placed to the Management for approval through Merits & demerits of particular proposals/plans are observed by the management of Square Pharmaceuticals Ltd. to reach to a single decision. This decision is also important to develop the strategy for the long term benefit of the Square. Decision making process includes Identification of the problem Developing alternatives for the solution of problem Analyzing alternatives Selecting an alternatives Implementing the Alternatives. Sometimes the management also takes help from the technical experts in the relevant field. The day to day planning and decision making is mainly directed by the head of each department & decision. Planning is a very important tool for every organization. Planning involves defining the organizations goals, establishing an overall strategy for achieving those goals, and developing a comprehensive set of plans to integrate and coordinate
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organizational work. Square also makes a several types of plans to achieve their organizational goal Long term plan: Square makes long term plans which cover more than three years. Such as Square Increases its production more than 30% within two years. Short term plan: Square Makes some short term plans which cover less than one year. They make several types of short term plan. Such as, they decide they will increase their sales volume 10% within 6 months. Specific plans: Square ltd. Make some specific plan which are clearly defined and that leaves no room for interpretation. They make several types of specific plans. Such as give order to the general manager of production to increase production 20%. Directional plan: Square ltd. Also make directional plans which are flexible and set out general guidelines. Such as they sometimes set plan to increase revenue by 5 to 10 percent over the next 6 months Strategy and Planning Mechanism

The

strategy

and

planning

Mechanism

of

Square

Pharmaceuticals Ltd. is not different from other organizations strategic planning process. The Planning mechanism involves
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focusing on the goal and developing the overall strategy for achieving the goal. Strategy involves long term decision making to get a long term benefit. While developing the strategy it considers its mission and objective. Based on these two, the current situation is analyzed. Considering all these things the long term the strategy is developed to have the best output. After developing the strategy, the activities required to implement the strategy is designed. In addition to the development of functional policies, a required resource is identified. After the implementation of the strategy the result is measured and evaluation is done by the management bodies. If any change is required, the strategy is modified time to time. SWOT Analysis A comparison of strengths, weakness, opportunities and threats is normally referred to as a SWOT analysis. Every organization over the years of its operation generates some strength and some weaknesses which are solely internal and not dependent on the externalities. Opportunities and threats are on the contrary out of control of an organization and thus absolutely external. Square Pharmaceuticals Ltd. has many things to its credit as strengths while like any other company in the same industry has some weaknesses. Square is always abreast of the market trend and proactive to adopt any market changes and explore opportunities.

Strengths:

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Strengths are activities that an organization does well or any unique resources that it has. The strengths of square are: Excellent quality of product Dynamism Dynamic products High tech machineries.

Skilled technical person.

Less worker migration Goodwill in market. Strong sales network

Weaknesses: Weaknesses are activities that an organization doesnt do well or resources it needs but doesnt posses. The weaknesses of Square are: A weak advertising system Cant produce all the medicine of cancer and some fatal diseases. Sometime owners relative employee act as a disturbance employee. Cant export medicines in all the countries in the world. Need to import most of the raw materials Opportunities: Opportunities are positive trends in the external environmental factors. The opportunities of Square are:

Organization has a strong goodwill in the Europe and America.

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 On line information system. So, Internet base can help the customers to see their information from their home personal computer. Customers trust its products. It has a vast network of suppliers. Govt. rules and regulations are slack on the pharmaceutical sector.

Threats: Threats are negative trends in the external environmental factors. The threats for Square are: Large volume buyer will not be come due to unexpected political unrest. Grow up competitor with most modern machineries. Lack of skilled workers in the industry.

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Structure of the Organization

The formal arrangement of jobs within an organization is the structure of an organization. Square divides works to be done into specific jobs and departments, assign tasks and responsibilities associated with individual jobs, coordinate diverse organizational tasks, clusters jobs into units, establish relationship, formal lines authority, allocates and deploys organizational resources.

Departmentalization:
The basis by which of jobs are grouped The together Ltd various is known of as the

departmentalization. functional structure

Square

Pharmaceuticals

has established functions

organization.

undertaking are first determined and then a functional expert in each is appointed, who will be responsible for his technical function. Square Ltd has established the following department for his smooth running.

Planning department:
After getting production order from merchandising dept, they analyze the production order & rearrange the orders as per delivery schedule. Then distribute the production order to respective dept. & take delivery schedule. The planning dept always update production order & inform merchandising dept about the order status. If any deviation found then they call meeting with respective dept. & help to come out.

Production department:
After getting production order with ready for delivery schedule then analyze the order & planning as self dept. Related all technical process prepare and supply in floor and produced as per buyer requirements. Store & lab related all activities completed by production department.

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Finance department:
This department determines the required fund, calculates the cost of each source, and finally collects the required fund from the minimum cost source.

Human resource department:

HRD involves planning, recruiting, selecting, orienting, training &

developing human resources in the organization. In order to improve productivity of human input, the Company continuously provides formal and informal training to the employees at every echelon of operation and management. During the year under review 2,144 persons received inhouse/in operation/on the job training at home and abroad which will ultimately make great contribution to the Company's profitability as well their own remuneration in due course.

Accounts department:
They maintain companys proper books of accounts. Budgetary control, matters relating to statutory audit and corporate tax matters. Prepare of periodic financial statements as prescribed in the applicable act, rules and relevant laws. Budget preparation and control. Dealing with banks and financial institution in negotiating terms and condition of short term and long term investment. Directing company short and long term business plan. Developing and implementing companys financials plans and policies. Preparation of monthly, quarterly, half yearly and annual management reports on accounts including analysis of variances.

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Purchasing department:
Taking all positive steps to purchase as company requirements but sometime raw materials purchasing is not up to the mark quality.

Hierarchy:
In Square has a system of hierarchy. From top level management to lower level workers are Organized in hierarchy, each lower level one is being controlled and supervised by higher level one in every department.

Job analysis:
Square has effective practice for job analysis. In working process all related people confirm jobs and behaviors necessary to perform them .But job analysis by English is difficult to understand for workers.

Job specialization:
The degree to which tasks are divided into separate jobs is also known as division of labor. In this organization every employee has job specification but all jobs are not specialized according to employees skill, abilities, performance & experiences.

Span of control:
The number of employees a manager can efficiently & effectively manage is refer to as span of control. In Square wider span is in production department. As a result it is more efficient in terms of cost but less effective. Other departments have been reached to a limited range. When the span becomes too large, employee performance suffers because managers no longer have the time to provide the necessary leadership and support. Larger span of control are consistent with managers efforts to reduce costs, speed up decision making, increase flexibility, get closer to customers and empower employee.

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Squares Organizational Hierarchy

Chairman Managing Director General Manager

Manager Planning Dept.

Manager Purchasing Dept.

Manager Finance Dept.

Manager Production Dept.

Manager Marketing Dept.

Manager HRM Dept. Sr. Executive Executive

Manager Accounts Dept. Asst. Manager Executive

Asst. Manager Asst. Manager Executive Executive

Asst. Manager Executive

Manage r Lab & Q.C

Manager Production

Asstt. Manager store Executive Worker

Executive

Asst. manager Executive Divisional manager Dist. manager F.M M. R.

APM Manager,Factory Executive

Supervisor Operator

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Helper

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Human Resource Management

Human Resource department plays an important role to develop the most efficient manpower for the Square. Skilled, efficient, dynamic manpower is one of the most desirable features of this organization. For this aspect HRD recruited the perfect one by giving advertisement in different Daily news papers and taking written test and take written test and also viva voce exam. To have the best product of the newly appointed personnel, it also has the training division.

Recruitment:
The recruitment process is structured in a way that the highly qualified persons like to compete. In the recruitment process HRD mainly focused on the spirit, abilities, skill, experience, intention and skill to perform the assigned job efficiently so that the goal of the organization can be achieved.

Advertisement for the recruitment of a particular post:

For the recruitment Ltd. and selection of employees through of the Square is

Pharmaceuticals

advertisement

process

the

Dailies

maintained. This advertisement carries the necessary requirement of the candidates for the particular post as well as the address and the last date to apply.

Interview & selection:

After the advertisement, a certain number of candidates is selected for the written test at a particular day. After this written test the selected candidates also has to face the viva. After the viva, a selection is made for based on the skills, educational background, experience, smartness and the overall performance & the selected ones get appointment letters.

Training & development:

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To get the best output and to materialize the employees this organization maintains a training division. Anyone requiring specific training gets the training facility to develop the best in him. Newly appointed ones are mostly under this consideration.

Appraisal:
The superior ones observe the performance of the immediate officials working under his close direction. Based on the recommendation and report of the superiors HRD prepares promotion, bonus. Square provides incentives to the employees who exert extra efforts to his job. The incentive criteria may in the form of an increment at the end of the year. Some basic salaries pay to those employees which motivate the employee concern very much.

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Motivating employees
Every organization conducts its activities and achieves success by using the effort of its employees. Man is power. So this power must be utilized. Every organization takes different initiatives so that the employees can perform their jobs efficiently and effectively. Organizations motivate its employees

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and influence them so that they can do their best working in full swing. Organizations also provide training to increase quality level of employees. Square Pharmaceuticals Ltd. is one of the top-notch companies in Bangladesh. It has created sources of employment as well as it is also committed to keep rights of the employees. Square has taken different initiatives so that employees be motivated and do their best for accomplishing the goal of the company. The motivational tools the Square uses are given below: Square motivates its employees by meeting their physiological needs, providing job security and other facilities. It motivates its employees by providing the opportunity of

achievement. It provides its employees with the opportunity of developing their career quickly. A medical representative can be promoted quickly in the post of field manager, then in the administrative officer etc.
As the higher posts of Square contain higher power, the company

motivates its employees by encouraging them to show a better performance and achieve the power.
As Square provides the opportunity of research, an employee can

research for inventing new drugs and be renowned in the country and abroad. Square has created stuff provident fund for the future financial benefit of the stuffs. The company has an unfunded gratuity scheme which is known as Employees Retirement Gratuity. Under this scheme employees get the benefit depending on the length of service. Square has a group insurance scheme for its permanent employees.

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 Square has also created workers profit participation fund and welfare fund. This company makes a regular allocation of 5% on net profit before tax to this fund and payment is made to workers as per provisions of the company's profit according to the Workers Participation act, 1968.
It gives festival bonuses in every Eid and other religious occasions of

the employees of different religion.

It also gives bonuses when sales representatives fulfilled their sales goals.

Incentive bonus is given depending on the profitability. Special remuneration is given if a certain target is fulfilled within a

certain period of time. The incentive criteria may in the form of an increment at the end of the year. Square arranges annual reward giving ceremony for best sales representative.

Leadership Practices
Leadership is the process of influencing a group toward the achievement of goals. As a successful company, Square Pharmaceuticals Ltd. practices leadership in its organization for moving the whole organization towards its goals. For properly influencing the employees it provides its leaders i.e. managers with different types of powers, such as legitimate power, coercive power, and reward power. Its leaders can give orders to employees, praises them and discipline those who violate the company rules and regulations. The leaders in the Square are characterized by high level of credibility and trustworthiness. They are admired by their subordinates and they can

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inspire their subordinates. The proof of this is the increased productivity of square workers than that of workers of its competitors. The employees of Square trust their leaders i.e. they are willing to be vulnerable to the leaders actions because most of their leaders have the excellence of integrity, competence, consistency, loyalty and openness. Squares managers provide their employees with morale that make them ambitious and successful. Square also empower the employees i.e. increase the decision-making discretion of employees. It empowers its medical representatives for taking instant decision for convincing doctors and medicine sellers.

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Controlling Process
In todays competitive global market place, managers want their organizations to achieve high level of performance by ensuring the effectiveness of the work activities. The managerial function of controlling is the measurement and correction of performance in order to make sure that enterprise objectives and the plans devised to attain them are being accomplished. In broader sense the process of monitoring work activities to ensure that they are being accomplished as planned and of correcting any significant deviations between the actual performance and the standards for the performance established.

Approaches followed by Square to designing Control System

There are three different approaches to designing control system have been identified: market, bureaucratic, and clan. Market Control: Square uses Market Control which is an approach to control that emphasizes the use of external market mechanisms, such as price competition and relative market share, to establish the standards used in the control system. By Using market control, Square turned its divisions into profit centers and evaluated by the percentage of total corporate profits each contribute. Typically used by organizations whose products or service are clearly specified and distinct and that face considerable marketplace competition. Bureaucratic Control: As Square is a very large company it also uses Bureaucratic control which is an approach to control that emphasizes organizational authority and relies on administrative rules, regulations , procedures, and policies. It is based on strict hierarchical mechanisms. Clan Control:

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Square also uses Clan control is an approach to control in which employee behavior is regulated by the shared values, norms, traditions, rituals, beliefs and other aspects of the organizations culture. It is dependent on the individual and the group (or clan) to identify appropriate and expected behaviors and performance measures.

The Control Process

As controlling is a continuous process, Square follows a three step process for controlling: measuring actual performance, comparing actual performance against a standard, and taking managerial action to correct deviations or inadequate standards.

Step-3 Taking Managerial Action

Step-1 Measuring Actual Performance

Step-2 Comparing Actual Performance Against Standard

Measuring the actual performance:

At first Squares managers measure the actual performance of the workers. There are four sources of information frequently used by managers to measure actual performance. Four sources consist of personal observations, statistical reports, oral reports and written reports of the organization.

Comparing the actual with standard:

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The second step of the controlling process named comparing step determines the degree of variation between actual performance and the standard.

Taking managerial Action:

In this step Squares managers take necessary actions if there is any variation between actual and standard performance. There are three possible courses of action for managers. They can do nothing; they can correct the actual performance, or they can revise the standards when they can realize that the variance was a result of an unrealistic standard; that is the goal may have been too high or too low.

Tools used by Square for Controlling Organizational Performance

Since organizations performance depends upon proper controlling, Square uses different tools for controlling its performance. These are given below The most desirable type of control feed forward control prevents anticipated problems since it takes place before the actual activity. Concurrent control takes place while work activity of the organizing is in progress and feedback control takes place after a work activity is done. Besides these three controlling tools Square also uses some other tools of controlling such as financial controls including ratio analysis and budget analysis, economic value added(EVA) and market value added(MVA) , balanced scorecard and information controls.

Operations and Quality Control

The design, operation, and control of the transformation process that converts resources into finished goods or services is called operation management.. In Square Pharmaceuticals Ltd. the operations system
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includes inputs such as-People, Technology, Capital, Equipment, Materials, Information and the outputs are- goods, Service by transformation process. Effective control systems tend to have certain characteristics in common. The importance of these qualities varies with the situation. Although effective control systems provide guidelines, their validity is influenced by situational factors. Different situations/factors may require different control system. These factors include the size of the organization, ones position and level in the organization hierarchy, degree of decentralization, organization culture and importance of an activity. Nowadays Square Pharmaceuticals Ltd. acquired a desirable and a leading position among the other companies of Bangladesh. This company mostly carries the qualities that are required for the effective control system. Furthermore, its able to take necessary steps considering the various factors like size, culture, importance of activities etc. to have the desirable and effective control to ensure the quality of the management of operation. Improving productivity management followed Plan for the long-term future. Establish statistical control over production process and require suppliers to do so as well.
Deal with the best and fewest numbers of suppliers.

Find out whether your problems are confined to particular parts of the production process or stem from the overall process itself. Train workers for the job that are asking them to perform. Drive out fear. Encourage departments to work closely together rather that to concentrate on department or divisional distractions.

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Summary
Square is one of the dominating companies in Bangladesh. It has been operating its business operations successfully in different sectors by its long time experience and strong management process. By its skilled human resource, well defined plan, definite goal and strong leading process it becomes a leading company in Bangladesh. The company plays a significant role in producing quality drugs in Bangladesh. It also plays a vital role in developing the socioeconomic condition of our country by paying a large amount of tax and taking participation in social activities. Square leads its employees in such a way that they help organization achieve its goals. It also controls its employees work activities for improving their work performance. It also controls the quality of its products for preserve its existing goodwill in the market. In a word Square follows good practices of management in its corporate world for remaining in the top position in Bangladesh.

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Conclusion
Square Pharmaceuticals Ltd. is established from conventional method to modern method by his management policy and better effort of employees. Day by day it will be expanded by getting more profit. For better management policy within short time Square acquired a leading position in Bangladesh. This organization is much more effective than others to identify the weakness it carries as well as to solve them very effectively. It follows a strong management system so that it can maximize its target. For availability of labor & quality of product this organization as well as Bangladesh will dominate over competitor in global market.

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Bibliography

1. Management (8th Edition), Stephen P. Robbins & Mary Coulter.

2. Management (8th Edition), Ricky W. Griffin. 3. Annual Report of Square Pharmaceutical Ltd. 4. Mr. Monirul Islam, Senior officer- HRM, Square Pharmaceutical

Ltd.
5. www.google.com 6. www.squarepharma.com.bd

7. The daily star.

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