Management Fundamentals Essay Example

Management Fundamentals Essay From the inception in 1958, it has today burgeoned into one of the top line conglomerates in Bangladesh. Square Pharmaceuticals Ltd. , the flagship company, is holding the strong leadership position in the pharmaceutical industry of Bangladesh since 1985 and is now on its way to becoming a high performance global player. SQUARE  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 7. 5 Billion (US$ 107. 91 million) with about 16. 92% market share (April 2006– March 2007) having a growth rate of about 23. 17% History of Square Pharmaceuticals Limited Square Pharmaceuticals is regarded as the one of the top Pharmaceuticals Company of Bangladesh. A major enhancement occurred in the year 1974 when it signed a Technical Collab oration Agreement with Janssen Pharmaceuticals of Belgium a subsidiary of Johnson Johnson International Ltd. The next advancement occurred in the year 1984 when it signed another Technical Collaboration Agreement with F.Holfman-La Roche Co. Ltd. In 1991 it again changed its form and turned in to a Public Limited Company. It enrolled in both the stock exchange listings in 1995. The company signed an agreement with M/S. Bovis Tanvec Ltd. of UK for implementation of Dhaka Plant in 1996. For its excellence in the field of Quality Management System (QMS) it was awarded ISO-9001 certificate in 1998. The Pharmaceuticals business lines include â€Å"Manufacturing and marketing of Pharmaceuticals finished products, Basic Chemicals and Agro Vet Products†.For extraordinary performance the chairman of the company received national award for entrepreneurship in the year 2000. Square Pharmaceuticals, a voyage through time: Commitment to Quality and Dedication to advanced Technology: 1957 :Humble Debut as a partnership firm. 1958: Manufacture and market the first proprietary medicine EASTON’S syrup, widely used in post malarial convalescence. 1962: Manufacture and market first compressed tablet SANTONIN, an antheimintic. 1964: Transformation into Private Limited Company. 974: Technical Collaboration Agreement with Janssen Pharmaceuticals, Bwrse, Belgium, a subsidiary of Johnson Johnson International, USA- commitment towards world class GMP. 1976: First national company to manufacture and market antibiotic i. e. AMPICILLIN soon after the expiry of patent. It is also the first national company to manufacture and market METRONIDAZOLE in 1977 and CONRIMOXAZOLE in 1978, soon after expiry of their patent. 1982: Licensing agreement signed with F. Holfman- La Roche Ltd. Switzerland. 1985: Achieved market leadership in Pharmaceuticalsceutical market in home country. 987: First national company to export medicine- an industry record.Export market increased continuously : UK (1987), Singapore (1987), Nepal (1990), Pakistan (1996), Yemen (1996), Myanmar (1997), Srilanka (1997), Combodia (1997) and Russia (1997). 1991: Manufacture and market sterile injectable powder using fully automatic and synchronized with electrical control washing, drying, sterilizing tunnel and filling line, again first national company introducing the world class technology. 1992: Turnover crosses the billion Taka mark- another industry record. 993: First national company to manufacture and market sustained release tablet CLOFENAC 100 mg (Diclofanac sodium BP) a NSAID, using its own resources. 1994: Converted in to a Public Limited Company and floated public share with highest premium. 1995: Listed in Dhaka and Chittagong stock exchange. 1997: First international company to manufacture and market metered dose inhaler, Beclomin 200 puffs, an anti-asthmatic i. e. bronchodilator 1998: Achieved ISO 9001 certificate. 1999: Agreement with Bayer AG, Germany; Eisal Co. Ltd. , Japan. or a help in Technical know-how to foreign Pharmaceuticalsceutical company. 2000: Turnover crosses 2. 5 Billion mark-an industry record. 2005: SQUARE Pharma gets approval to export to UK 2006 SAFA (South Asian Federation of Accountants) – an apex body of SAARC (South Asian Association of Regional Cooperation) awarded Square Pharmaceuticals Ltd. the Merit Certificate for the year 2006 in the Manufacturing Sector of SAFA Best Presented Accounts Awards Competition 2006 2009: Awarded as the Enterprise of the year and the winner of Bangladesh Business Award 2009Products of Square Pharmaceuticals Limited The formulation plants are producing wide range of dosage forms like |Tablets : |Non-Coated (plain, chewable, dispersible, vaginal)   | | |Coated (sugar coated, film coated, enteric coated) | | |Sustained/Extended Released (coated, non – coated) | |Capsules : |Granulated Material filled | | |Pellets Filled | |Suppositories : |Suppocire based | |Injections : |Vials contain ing Dry Powder for Injections | | |Small Volume Liquid Parenterals | |Liquids : |Oral Syrups (Sugar based, Non-Sugar based)   | | |Oral Suspensions | | |Topical Liquids | |Spray, Drops, Ointment, Cream and |Small Volume Sterile Eye Ear Drops | |Powder : |Small Volume Nasal Drops Sprays | | |Topical Ointments Creams | | |Topical Antibiotic Powder | |Oral Dry Powders : |Dry Suspensions (Antibiotic Anti Infectives) | | |Dry Syrups (Antibiotics) | |Dry Powder Inhalers : |Partial Filled (Premix) Capsules for Respiratory Tract Application with a Device | |Metered Dose Inhalers : |Pressurized Canisters for Oral use with an Actuator | |Chemical Division started commercial production in 1995.From the year 1997 it started it’s full-fledged production and marketing | |to all top pharmaceuticals within the country including Aventis Pharma, Novartis Bangladesh Ltd. , Glaxo Smith Kline, ACI Ltd. , | |Reckitt Colman, Beximco Pharmaceuticals Ltd. , The Acme Laboratories Ltd, Eskayef B angladesh Ltd. , Opsonin Chemicals, Renata | |Ltd. , Essential Drugs Co. Ltd. etc. with good reputation and loyalty. | Capital Structure The capital structure of the Square Pharmaceuticals is as follows: |Components |Taka |Percentage | |Paid Up Capital |67,000,000 |11. 4% | |Creditors |99,125,404 |17. 37% | |Long Term Bank Loan |136,541,244 |23. 93% | |Share Money Deposit |268,000,000 |46. 96% | [pic] Figure: Capital Structure of Square Pharmaceuticals Limited Extraordinary Performance Recent Achievements 1997:Square Pharmaceuticals received the National Export Trophy as recognition to its contribution to national economy through export 006: SAFA (South Asian Federation of Accountants) – an apex body of SAARC (South Asian Association of Regional Cooperation) awarded Square Pharmaceuticals Ltd. the Merit Certificate for the year 2006 in the Manufacturing Sector of SAFA Best Presented Accounts Awards Competition 2006 2009: Square Pharmaceuticals Limited awarded as the Enterpri se of the year and the winner of Bangladesh Business Award 2009 Organogram Figure: Organogram of Square Pharmaceuticals Limited Contribution to National Economy The pharmaceutical sector attained a growth of 6. 91% during the year 2008 as against 15. 80% during the previous year. The national pharma market growth and that of the company during the past few years are given below: Year |National Growth Rate |Company’s Growth Rate | |2004 |8. 60% |13. 08% | |2005 |17. 50% |14. 30% | |2006 |4. 08% |22. 94% | |2007 |15. 80% |9. 81% | |2008 |6. 1% |18. 83% | Chapter Two Objectives Short term objective To conduct transparent business operation based on market mechanism within the legal social frame work with aims to attain the mission reflected by the company’s vision. Long term objective 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. Social objectives †¢ To provide top quality health care products at the least cost reaching the lowest rungs of the economic class of people in the country. To fulfill of our responsibility to the government through payment of entire range of due taxes, duties and claims by various public agencies like municipalities etc. †¢ To avoid malpractices, anti-environmental behaviors, unethical and immoral activities and corruptive dealings. †¢ To ensure equality between sexes, races, religions and regions in all spheres of our operation without any discriminatory treatment. †¢ To ensure an environment free from pollution and poisoning. †¢ To give a hand for the achievement of millennium development goals for the human civilization Chapter Three Planning Planning Planning is the beginning of every venture.Sound, intelligent planning is the key to every successful venture. The development of planning was accelerated enormously by the industr ial revolution. There could have been no mass production without planning and effective transportation and communication. Planning covers a wide range of decisions, including the clarification of objectives, establishment of policies, mapping of programs and campaigns, determining specific methods and procedures and fixing day to day schedules. Figure: Planning precedes all other managerial functions Planning at Square Pharmaceuticals Limited Fundamentally there are two types of comprehensive corporate planning.The first is intuitive-anticipatory planning which is generally the work of one person and often does not result in a set of written plans generally has a short time horizon and reaction time; it is based on past experience, the judgment and manager’s reflective thinking. When planning for an individual staff working for a subdivision of Square Pharmaceuticals Ltd. Bangladesh, the individual has to use his / her experience, judgment and at times, intuition to make dec isions. Such plans are non-written and its validity is for a short-term. These plans can be changed frequently if situation demands. However, the formal long-range planning is research-based, involves the work of many people and results in a set of written plans. In Square Pharmaceuticals Ltd. any division or subdivision planning is done on the basis of extensive research, discussion and is usually in a written form, long-term basis and are not subject to frequent, abrupt changes. Square Pharmaceuticals Ltd. believes that experience points out the fundamental dos and donot’s in organizing, planning and other managerial functions. This must be understood if successful planning is to be achieved. All successful plans have common fundamental characteristics despite differing operational details. However, the insight gained through experience must be applied in the applicable areas. If the experience is applied in the wrong place the outcome will be disastrous. The planning proce ss is essentially top-down at Square Pharmaceuticals Ltd.The top management formulates strategies in the corporate level which is converted into divisional, then sub divisional and at last individual objective. The corporate head-office of Square Pharmaceuticals Ltd. is in â€Å"Square Centre†, 48, Mohakhali C. A, Dhaka-1212, Bangladesh, which is the actual policy maker and the policy made by them is later applied to all other departments. Planning of Square Pharmaceuticals Ltd. is not restricted to a department or a number of departments. Instead the entire process of planning is divided into two broad categories Strategic Planning (carried out at the top of the organization) and Operational Planning (which is carried out at different divisions).The following shows Planning Unit as a whole- Corporate Office, Dhaka Board of Directors General Managers Division Heads Subdivision Heads Figure: Organogram of the Planning Unit. Planning by objectives Objectives or goals are the e nds towards which activity is aimed. They represent not only the end point but also end toward which: organizing, staffing, leading and controlling are aimed. Objectives form a hierarchy, ranging from the broad aim to specific individual objectives. At the zenith of the hierarchy is the purpose, which has two dimensions: First- The purpose of society Second- The purpose of business Figure: Planning by objective Plans 1.Strategic Plan: In Square Pharmaceuticals Ltd strategic planning is limited to the heads of all the divisions / departments and the General Manager. The organogram of the Strategic Planning Unit: Board of Directors Management Committee Divisional Heads Figure: Organogram of the Strategic Planning Unit. Once the policy for a new product is set by the corporate office of Square Pharmaceuticals Ltd, the General Manager of each sector along with the heads of each division consult / discuss with the heads of all subdivisions. After such discussion, the heads of each divisi on prepare their division’s proposed plan which is sent for the General Manager’s approval. The General Manager then gives the final decision.Once approved and signed by the division heads, the division heads pass on the objectives and the chain continues downward along the organizational hierarchy until everyone knows what their individual goals are, what tasks to accomplish and how their work contribute to their divisional and organizational goal. 2. Operational Plan: Operational planning consists of the day to day plans, policies and rules of an organization. In operational planning mainly top-down approach is applied. At Square Pharmaceuticals Ltd, operational planning is carried out at different hierarchy levels. This is done because it is believed that since managers have direct responsibility for some phase of operating results, they should have some say in setting meaningful and attainable objectives.Square Pharmaceuticals Ltd uses a participative management ap proach (In the top level management) in setting objectives. The concern believes in setting a goal for each individual for effective and efficient achievement of overall divisional and organizational goal. Operational planning at Square Pharmaceuticals Ltd starts off with the division heads and the General Manager designing a business plan for the next operating period. This plan is trickled down to the division heads who decide on the specific objectives that their divisions will have to achieve in order to meet the overall organizational goals. The division heads then pass on the objectives to the respective subdivision heads that analyze the objectives and check their viability.Individual staff within the subdivisions decides on their task and responsibilities (depending on their competence, experience and ability to handle multiple responsibilities). The feedback from the individual staff of every subdivision goes to the subdivision head and then to the division head. Heads make any alterations or modifications if required and send their feedback to the General Manager. Heads of all divisions are continuously trying to create a balance between available resource (human, capital and technical) with the General Manager’s demands / set goals. Finally after evaluating all aspects, the final plan (along with goals, strategies) is decided upon by the General Manager. Then the plan is assigned to every division and subdivision head.This is how the heads and individual workers decide on how far they can contribute and how they can do so within the given resource base and time. Thus the approved and signed operational plan is passed downwards for implementation. The chain continues downward along the organizational hierarchy until everyone knows exactly what their duties and tasks are, what is required of them to accomplish their own divisional and organizational goal. The feedback is received once the plan is in the process of implementation. Once undergoin g implementation, the sub divisional staff give feedback as how the plan is working. The subdivision heads report to the division heads who again inform the General Manager of the implementation.If the efforts are being directed toward the attainment of the desired goal then there is no change the heads ask their subordinates to continue their good work. However, if the division or subdivision heads feel that there are deviations then corrective actions are taken. In case of extreme difficulty, the General Manager is informed and the operational plan may be modified or changed to ensure proper accomplishment of operational tasks. There are various types of operational plans used by Square Pharmaceuticals Ltd such as: programs, projects, budgets, policies, standard programs and rules. Planning process of Square Pharmaceuticals LimitedFigure: Planning Process of Square Pharmaceuticals Limited Planning Premises Premises are defined as the anticipated environment in which plans are exp ected to operate. It includes the forecasting of future and known conditions that will affect plan’s operation. The premises must be carefully considered when planning takes place. The plan, although made at one point in time, will actually operate in future which is full uncertainty. Therefore, effective and efficient planners must agree and utilize consistent planning premise. Forecasting is a prerequisite to planning and also is the result of planning. Both are translated into future expectancies from actual plans developed.Making educated assumptions depending on past experience and knowledge is essential in forecasting the environment / sales. ENVIRONMENTAL FORECASTING Square Pharmaceuticals Ltd believes accurate forecasting of its environment is crucial for proper planning. The planners at the concern take into account the human and material resources available to them, opportunities and threats, compute the optimum method of reaching their objective and proceed toward the attainment of desired goal. Not only the economic but the social, cultural, technological and political-legal environments must be selected for making forecasts which in turn will ensure effective planning. SALES FORECAST KEY PLANS AND PREMISESales forecast is the prediction of expected sales for a certain period. For Square Pharmaceuticals Ltd the sales forecast is in the form of number and face-value of the deposits made or lending products sold, number of cards sold etc. The sales forecast at the concern is done by the top-managers (heads in joint collaboration with the General Manager) which are the Jury of Executive Opinion method. This forecasting method is one where the General Manager gives the final word based on others views / opinions. Square Pharmaceuticals planning is based on the following four premises which are strictly adhered to by the management of Square Pharmaceuticals Ltd. DYNAMIC NATURE OF A CONCERNSquare Pharmaceuticals Ltd recognizes the fact that the organization is dynamic in nature and as staff changes occur (through termination, resignation, death/retirement), the organization also changes. Therefore, each organization is unique no universal approach can be applied to all. The comprehensive plans must fit the characteristics of the organization for which it has been designed. Due to the dynamic nature of the organization there must be leeway for contingent plans. Square Pharmaceuticals planning unit meets every month to follow-up on the performance of each division and subdivision. In case of any contingency the division and subdivision heads bring the matter to the General Manager’s knowledge and take necessary action accordingly. GROWING NUMBER OF COMPETITORS SNATCHING THE CONCERN’S CUSTOMERSRecent emergence of many foreign and local banks in the banking scenario also poses a positive threat to Square Pharmaceuticals Ltd. For a very long time the concern was the only foreign bank operating in Bangladesh. But the formation of new local banks and entrance of foreign competitors which is likely to increase further is one factor the concern cannot ignore. These competing banks will not only compete for customers / market share but also for reputation which has been the major strength of Square Pharmaceuticals Ltd for almost a hundred years. RISING AWARENESS OF THE CUSTOMERS’, THEIR GROWING DEMANDS AND DECREASING LOYALTY TOWARDS THE CONCERN The customers of today are far more aware of their rights and demand for highest quality service.At times if the concern fails to meet the customers high standards, the customers may link a single isolated incident and shift their accounts to other competing Pharmaceuticals. The loyalty of the customers is constantly decreasing when confronted with better deals / attractive packages offered by other banks. This factor is also an important one to consider for the concern. Forecasting and premising are, therefore, two essential activities that must be undertaken properly to ensure planning is effectiveness and efficiency. Chapter Four Organizing Organizing in Square Pharmaceuticals Limited Square Pharmaceuticals Ltd is in essence a people centered organization whose all pervasive aim is to maximize profits through investments in human resource.It is this ultimate objective which defines and informs the organization structure of the concern at every level starting from the very top at the board of directors down to the factory supervisors i. e. the building blocks of the concern. Each personnel at every level of this structure have a role to play in the eventual achievement of Square Pharmaceuticals goals. Square Pharmaceuticals Ltd is organized: a voluntary configuration of roles has been established that will enhance performance through furnishing an ideal environment. At Square Pharmaceuticals Ltd, the organizational structure is important not for its own sake but for its contribution to goals. This is in keeping with the b est organizational practices. It is evident that the concern is a formal organization as the term has been defined by Barnard.His broad definition referred to the activities of two or more people consciously coordinated toward a given objective, the essence being conscious common purpose. Square Pharmaceuticals Ltd meets these criteria very well. It is a complex organization but the activities of its people are coordinated towards that final goal profit maximization for Square Pharmaceuticalsceutical’s and self-sufficiency and social security for the employees. It is at the heart of the concern’s every action, at the same time, the structure permits its primary human resource the managers and the workers to use their creative talents and recognizes individual capacities and weaknesses. Fears of restrictive dangers of a formal organization are thus dispelled.Square Pharmaceutical’s structure fulfils the principal of efficiency (an organizational structure is e fficient if it facilitates accomplishment of objectives by people, i. e. , is effective with the minimum unsought consequences or costs) in addition to the principle of unity of objective (an organizational structure is effective if it facilitates the contribution of individuals in the attainment of enterprise objectives). Types of Departmentation 1. Functional Departmentation: The important departments at Square Pharmaceuticals Ltd are namely – Pharmaceutical, Chemical, and Agro-Vet etc. These are all part of the Square Pharmaceuticals support unit and are divided on the basis of functions performed. So, the functional departments are: i. Pharmaceuticals Division- Manufacturer of finished dosage forms. ii.Chemical Division- Manufacturer of bulk drugs. iii. Agro-Vet Division- Manufacturer of finished Agro-Vet products 2. Service Departmentation: Service departments are as follows i. Finance and Audit Division ii. Information Technology Division iii. Marketing Division- PMD ; MSD iv. Human Resource Division 3. Territory Departmentation: Territory Departmentation are as follows: Figure: Territory Departmentation Recruitment Square Pharmaceuticals Ltd’s staffing (filling organizational positions with qualified people) is done in two ways. These are recruitment as a Management Trainee or as Probationary Officer. In case of a Management Trainee, there is a written exam.After passing the written exam the probation period is nine months. After completion of the probationary period, the trainee joins as a fifth grade officer. The career path of each trainee is headed toward different managerial jobs. A Probationary Officer (Officer Trainee) is the second way of getting in the concern. An Officer Trainee is one who joins for a probationary period of one to one and a half year and if performance is satisfactory then he / she is retained as a fourth grade officer. The career path of an Officer Trainee is not as smooth as that of the Management Trainee and the career progression is a lengthy process. Sources of Recruitment INTERNALThe internal sources are employees who already exist at Square Pharmaceuticals Ltd Limited They are recruited through promotion, training, transfer, etc. In practice, whenever there is a vacancy, management looks for a candidate within the organization. This priority to internal recruitment process is given due to the lengthy and critical process of internalizing the Square Pharmaceutical Limited’s philosophy. EXTERNAL External sources of the employees for Square Pharmaceuticals Ltd Limited submit application letters for their recruitment. Most of these employees would come from the several educational institutions in Bangladesh including the IBA. But the organization prefers Pharmacists, chemists, doctors and paramedics with MBA. Recruitment and Selection ProcessRecruitment and selection -Recruitment policy of Square Pharmaceuticals Ltd: 1. Recruitment is made against sanctioned set-up posts and budg et provision. 2. Recruitment is processed only when vacancies are needed to be filled up from amongst the existing human inventory. 3. Inter-department candidates through promotion fill up Eighty percent. 4. Department candidates are allowed to sit for tests and interview with outsiders. Figure: Recruitment ; Selection Procedure in Square Pharmaceuticals Ltd. Compensation Policy and benefit packages Square Pharmaceuticals Ltd offers various compensation packages beside the basic salary. The packages given here are:Performance Appraisal Techniques Need for performance appraisal at Square Pharmaceuticals Ltd †¢ Making personnel decisions including recruitment and selection process †¢ Evaluation of actual performance †¢ Determining the weaknesses and strong points of each employee †¢ Assessment of training and development need †¢ Used for reward granting selection †¢ Guide to job change including promotion, transfer, etc. †¢ Awareness of each employee s individual differences †¢ Allows top management to become familiar with each employee †¢ To test effectiveness of a training program †¢ To stimulate confidence in fairness of management †¢ To motivate employees to improve To encourage talent and sincerity in employees. Use of Performance Appraisal PROMOTION Workers are promoted based on their ACR and also the judgment of their immediate superior. Employees at the officer level (i. e. managers and above) and at the non-officer level (i. e. below manager) require a minimum of point in the ACR. Another criterion for promotion is the job age of the employee which, at the current position, must be more than three years. If there is more than one candidate for a single post with all the necessary points and job age, then other criteria like past records, age, efficiency, reliability, etc. are considered. INCREMENTSquare Pharmaceuticals Ltd employees have a fixed percentage of increment every year. This percentage var ies at different levels of promotion. The percentage rate is quite high at the top levels and low at the bottom levels. So increment percentages are determined with the help of ACR’s. ADVICE FOR IMPROVEMENT After the performance of the employee has been evaluated, the management might decide that one particular employee with satisfactory ACR may have the potential to improve more. So management sends the ACR as well as a recommendation letter to the immediate superior of the subordinate and tells him to keep close supervision on that subordinate.Types of Training Different types of training used in Square Pharmaceuticals are given below: †¢ Employee training. †¢ Employee development. EMPLOYEE TRAINING Training is more present-day oriented; its focus is on individuals’ current jobs, enhancing those specific skills and abilities to immediately perform their jobs. Although you have a Business administration degree, you’ll need to learn the company’ s product line, your territory, and other pertinent selling tactics. This, by definition, is job-specific training, or training that is designed to make you more effective in your present job. TRAINING PROGRAM On-the-job training Off-the-job trainingA) ON-THE-JOB TRAINING On-the-job training places the employees in actual work situations and makes them appear to be immediately productive. It is learning by doing. APPRENTICESHIP PROGRAMS People seeking to enter skilled trades—to become, for example, plumbers, electricians, or ironworkers—are often required to undergo apprenticeship training before they are accepted to expert status. ENTRY-LEVEL TRAINING This is arranged for those who are in a probation period. This is a training program where a mentor relationship is prescribed and the program is fully job oriented. If the employee can fulfill the requirement then he is finally confirmed. Some of these are:Effective management System (EMS) Development of Effective Detai ling Aids (DEDA) Introduction to Product Management (IPM) B) OFF-THE JOB TRAINING Off-the-job training covers a number of techniques—classroom lectures, films, demonstrations, case studies, and other simulation exercises, and programmed instruction. SEMINARS OR CONFERENCES In Square Pharmaceuticals the seminar or conference approach is well adapted to conveying specific information—rules, procedures, or methods. The use of audio-visual or demonstrations can often make formal seminar presentations more interesting while increasing retention and possibly clarifying more difficult points. EMPLOYEE DEVELOPMENTEmployee development, by design, is more future oriented and more concerned with education than employee training. By education we mean that employee development activities attempt to instill sound reasoning processes- to enhance one’s ability to understand and interpret knowledge- rather than imparting a body of facts or teaching a specific set of motor skills . Development, therefore, focuses more on the employee’s personal growth. EMPLOYEE DEVELOPMENT PROGRAM Some development of an individual’s abilities can take place on the job. We will review four popular on-the-job techniques: coaching, understudy assignments, job rotation, and committee assignments. †¢ On the job method †¢ Off the job MethodA) ON-THE JOB METHODS UNDERSTUDY ASSIGNMENTS The busy schedules in Square Pharmaceuticals are characterized by a particular phenomenon; a rapid rise in the use of understudy assignments to replace vacationing personnel. By understudy assignments, we mean that employees with demonstrated potentials are given the opportunity to relieve an experienced employee of his or her job and act as his or her substitute during the period. This label also describes permanent â€Å"assignment to† positions as well as temporary opportunities to assist senior employees in completing their jobs. JOB ROTATION Another method used in S quare Pharmaceuticals is job rotation.Job rotation involves moving employees to various positions in the organization in an effort to expand their skills, knowledge and abilities. Job rotation can be either horizontal or vertical. Vertical rotation is nothing more than promoting a worker into a new position. Horizontal job transfers can instituted (1) on planned basis—that is, by means of a development program whereby the worker spends two or three months in an activity and is then moved on; or (2) on a situational basis—that is, by moving the person to another activity when the first is no longer challenging to him or her, or to meet the needs of work scheduling. ASSIGNMENT TO COMMITTEEFinally, assignment to a committee provides an opportunity for the employee in Square Pharmaceuticals to share in decision making, to learn by watching others, and to investigate specific organizational problems. When committees are of an â€Å"ad hoc† or temporary nature, they o ften take on task force activities designed to delve into a particular problem, ascertain alternative solutions, and make a recommendation for implementing a solution. These temporary assignments are both interesting r