Rash Pharmaceuticals

Essay by mailstinger March 2004

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Rash Pharmaceuticals

Problem: Growing dissatisfaction among the employees

Establishment of the Problem:

Rash pharmaceuticals has shifted from a paternalistic system of management to a more professional system in which the sons of the promoters are the directors. After the introduction of these structural changes in the top management, there was increase in the employee absenteeism and a high employee turnover rate. Further, the responses to the consultants' questionnaire shed some light on the areas of concern such as

·Disparity in the salary structure for same level across departments.

·Unplanned changes and ambiguity about the current thinking and ideas of the management.

·Channels of communication between the top management and lower levels are not open.

·Bureaucratic nature of inter-department communication.

·Ambiguity regarding the HRM policies particularly those on promotion and appraisal.

·Supervisors feel helpless in either rewarding or punishing their subordinates.

The employees did not feel as a part of the decision making process and perceived that the management was imposing its decisions on them, leading to a feeling of exploitation by the company.

Also, due to lack of clarity with the HR policies of the company, the employees were sceptical about their growth prospects with the company.

The effect of above factors has led to dissatisfaction among the employees.


Long term:

·To become a market leader in the pharmaceutical industry

Short term:

·To decrease the high employee turnover rate by improving employee satisfaction.

General Alternatives

a.Information sharing and Communication- about the changes in the company, the need for those changes, the HR policies. Inter department communication process to be made non-bureaucratic.

b.Participative management- Involve employees in the decision-making process.

c.Changes in the company policy to enforce retention up to a certain period and take action against increased absenteeism.

d. Training and Induction: The new employees...