AMBER PHARMACEUTICALS
In a pharmaceutical company manufacturing and marketing drugs and medicines, the research staff has developed a number of new products and formulations that are effective. However, it has to meet severe competition from stalwarts with foreign collaboration. Mr. Shah, the Vice President of Marketing, has a very successful Pharma Marketing background. He has been with the company for the past 4 years. Mr. Shah had made ambitious plans for capturing a sizeable share of the market in the Gujarat State. The company being medium-sized, Mr. Shah had kept his marketing department and the marketing team lean and trim. The field sales staff was given aggressive targets and were virtually pushed to reach their respective targets. The field staff worked to their best abilities to compete for their respective targets. Mr. Shah had himself been working hard almost 11-12 hours a day. There was no formal appraisal and reward system in the company. During the last 5 years, more than 60 Medical Representatives and the Area Supervisors had left the company due to unsatisfactory increments and promotions. Those who left the company were star workers. However, Mr. Shah did not care for this high turnover. He was overconfident that he would be able to hire freshers and also select candidates who were not happy with their remuneration in their respective company. Mr. Shah had never communicated to the field sales staff about their performance or reasons for not recognizing their outstanding performance in a few cases. There was, on the whole, great dissatisfaction, and good performers were leaving the company.
What are the steps you will take sequentially to correct the situation?
From India, Calcutta
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5In a pharmaceutical company manufacturing and marketing drugs and medicines, the research staff has developed a number of new products and formulations that are effective. However, it has to meet severe competition from stalwarts with foreign collaboration. Mr. Shah, the Vice President of Marketing, has a very successful Pharma Marketing background. He has been with the company for the past 4 years. Mr. Shah had made ambitious plans for capturing a sizeable share of the market in the Gujarat State. The company being medium-sized, Mr. Shah had kept his marketing department and the marketing team lean and trim. The field sales staff was given aggressive targets and were virtually pushed to reach their respective targets. The field staff worked to their best abilities to compete for their respective targets. Mr. Shah had himself been working hard almost 11-12 hours a day. There was no formal appraisal and reward system in the company. During the last 5 years, more than 60 Medical Representatives and the Area Supervisors had left the company due to unsatisfactory increments and promotions. Those who left the company were star workers. However, Mr. Shah did not care for this high turnover. He was overconfident that he would be able to hire freshers and also select candidates who were not happy with their remuneration in their respective company. Mr. Shah had never communicated to the field sales staff about their performance or reasons for not recognizing their outstanding performance in a few cases. There was, on the whole, great dissatisfaction, and good performers were leaving the company.
What are the steps you will take sequentially to correct the situation?
From India, Calcutta
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Dear Ric09, this is the second case study that you have posted. May I know what you do and where? Also, are you seeking solutions for the case study? If so, why? If I were you, I would have given my views and then asked for comments on mine.
Have a nice day.
Regards,
Simhan
A retired academic in the UK
From United Kingdom
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Have a nice day.
Regards,
Simhan
A retired academic in the UK
From United Kingdom
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Sorry that I didn't post my view. But it's not mean that I didn't try to solve the case study.
I think the basic problem of Amber Pharmaceuticals is that there was no formal appraisal or reward system. So the growth of the employees is stagnant. Employees were working there for many years but they were not getting any promotion or salary hike. Consequently, the attrition rate was increasing as the employees left the company due to unsatisfactory increments and promotions.
Therefore, the company needs to introduce a performance appraisal system. Through performance appraisal, it will be possible to measure the performance of the employees, which will help increase productivity and reduce the attrition rate. The morale of the employees will also increase when they receive promotions and increments based on their performance.
From India, Calcutta
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I think the basic problem of Amber Pharmaceuticals is that there was no formal appraisal or reward system. So the growth of the employees is stagnant. Employees were working there for many years but they were not getting any promotion or salary hike. Consequently, the attrition rate was increasing as the employees left the company due to unsatisfactory increments and promotions.
Therefore, the company needs to introduce a performance appraisal system. Through performance appraisal, it will be possible to measure the performance of the employees, which will help increase productivity and reduce the attrition rate. The morale of the employees will also increase when they receive promotions and increments based on their performance.
From India, Calcutta
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I am not a student. I have completed my MBA in HR. I am thinking that I will go for further study. So I am just trying to solve HR-related questions like case studies, multiple-choice, etc., which will help me in the future. That's why I'm on this site. Through discussion, I want to gain more knowledge about HR.
Have a nice day. Thanks.
From India, Calcutta
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Have a nice day. Thanks.
From India, Calcutta
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Thank you very much for the information. I would have given this information when introducing myself before posing the question. As I have mentioned earlier, it is always better for us to provide all the necessary information so that bloggers are aware of our motives and the situation. Thus, you have done the right thing in this thread by giving your analysis of the case and seeking the views of others.
Have a nice day.
Simhan
From United Kingdom
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Have a nice day.
Simhan
From United Kingdom
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