WELINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT AND RESEARCH
SUMMER INTERNSHIP PROJECT REPORT
AUDIT OF PERSONAL FILES AND COMPLIANCE ADHERENCE
PGDM HC 2017-2019 TRIMESTER IV
ROLL NO: 16
TO WHOM SOEVER IT MAY CONCERN
This is to certify that Ms. Pranjali Borker, a student of Welingkar Institute of Management Development & Research and pursuing two years full time Post Graduate Diploma in Management (PGDM), underwent two months of summer internship with us from 2nd May 2018 to29th June 2018.
During the summer internship, Ms. Pranjali Borker has successfully completed the project titled Audit of personal files and compliance adherence under the guidance of Mr. Nandan Kumar Singh, Manager – Talent Acquisition.
The Students performance during the summer internship and comments on his project work are as under: –
(Signature of the Authorized Company Official)
Name: Mr. Nandan Kumar Singh.
Designation: Manager – Talent Acquisition.
Date:29th June 2018.
NO PLAGIARISM DECLARATION BY THE STUDENT
I, the undersigned, hereby declare that the project titled “_____________________________ __________________________________________________________________________”
(a) Has been prepared by me towards the partial fulfilment for the award of Post-Graduation Diploma in Management – Healthcare under the guidance of _________________________,
S. P. Mandali’s Prin. L. N. Welingkar Institute of Management Development and Research, Mumbai.
(b) This work is original and has not been submitted for any degree/diploma in this or any other Institute/Organization.
(c) The information furnished in this dissertation is genuine and original to the best of my knowledge and belief.
(d) I have not indulged in plagiarism. The project report has been checked for plagiarism and output report has been attached.
Student Name Signature
The satisfaction and euphoria that accompany the successful completion of the project would be incomplete without the mention of the people who made it possible.
I would like to take the opportunity to thank and express my deep sense of gratitude to my corporate mentor Mr. Nandan Kumar Singh (Manager-HR) and my faculty mentor Prof.Aasawari Nalgundwar. I am greatly indebted to them for providing their valuable guidance at all stages of the study, their advice constructive suggestions, positive and supportive attitude, and continuous encouragement, without which it would have not been able to complete the project.
I would also like to thank Mr. Sumit Saluja (General Manager) and Mr. Sanjay Misra (Deputy General Manager) who in-spite of their busy schedule have provided able guidance to me throughout the project.
I express my wholehearted thanks and appreciation to the entire IRF-HR team of the company for making me feel at home and a member of the Lupin family encouragement, inspiration, motivation, unconditional co-operation, and assistance during tenure of my project.
I hope I can build upon the experience and knowledge that I have gained and make valuable contribution towards this industry in the coming future.
Table of Contents
Chapter 1: Introduction ………………………………………………………………7-11
Overview of the Industry
Key players in pharmaceutical industry
Chapter 2: Company Profile ………………………………………………………….12-15
About the Company
Senior Management team
Vision ; values of the company
Chapter 3: Executive Summary ………………………………………………………16-17
Chapter 4: Research Problem …………………………………………………………18-24
Objective of the Study
Scope of the Study
Managerial Usefulness of the Study
Analysis ; Interpretation
Findings ; insights
5. Chapter 5: Suggestions…………………………………………………………………25-29
6. Chapter 6: Summary ………………………………………………………………………..30-31
7. Chapter 7: Annexure……………………………………………………………………32-33
8. Chapter 8: Bibliography ………………………………………………………………34-35
List of figures
Figure No. Figure name Page No.
f.1 Document Management System excel (DMS) 20
f.j.1.1 SMS ; WhatsApp notification 26
f.j.1.2 Mobile application 27
f.j.1.3 Mobile application 27
f.j.2 Official website of lupin 28
f.j.2.1 File tracking system 29
f.i.1 Survey Response 24
f.i.2 Survey Response 24
Overview of the Industry 5
Pharmaceutical Industry Analysis 5
India has over the years progressed by leap and bounds and has made inroads in the Pharma Sector by becoming the largest provider of generic drugs globally. India supplies over 50 per cent of global demand for various vaccines, 40 per cent of generic demand in the US and 25 per cent of all medicine in UK.
India has the intelligentsia to take the country to greater heights. In the present scenario India supplies over 80 per cent of the antiretroviral drugs used globally to combat AIDS (Acquired Immune Deficiency Syndrome) are supplied by Indian pharmaceutical firms.
Market Size 5
In 2017 the Pharma Sector was valued at US $33 Billion and is expected to grow at a CAGR of 22.4% over 2015-20 to reach US $55 Billion. The Exports in the Pharma Sector was US $ 17.27 Billion in 2017-18 and is most likely to reach US Billion by 2020
Indian Pharma manufacturing Sector received 304 Abbreviated New Drug Application(ANDA) approvals from US Food and Drug Administration(USFDAI) in 2017.India Contributes approximate 30 Percent (by Volume) and about 10 Percent (value) in the US $70-80 Billion Generics market.
India’s Bio-technology Industry which encompasses bio-pharmaceuticals,bio-services,bio-agriculture, bio-industry and bio-informatics is expected to grow at an average growth rate of around 30 percent a year a year and reach US$ 100 Billion by 2025.The pharma Sector consisting of vaccines, therapeutics and diagnostics is the largest contributing approximate 62 percent of the total revenues of Rs.12600/-(US $1.89 Billion).
In an effort to boost the Pharma Industry the Government of India has approved amendment in Foreign Direct Investment (FDI) policy to allow FDI up to 100% under the automatic route for manufacturing of medical devices subject to certain conditions.
The Department of Industrial policy and promotion (DIPP) released the figures of drugs and pharma sector which attracted FDI inflow worth US $15.59 Million between April,2000 and December2017.
The pharma sector had 46 mergers and acquisition (M & A) deals worth US$ 1.47 Billion.
The branded drugs worth US$55 billion will become off patent during 2017-19 and exports to US will get a boost.
Government Initiatives 5
Some of the initiatives taken by the government to promote the pharmaceutical sector in India are as follows:
The Drug Controller General of India DCGI announced its plan to start a single window facility to provide consents, approval and other information.
An electronic platform is about to be setup to regulate online pharmacies under New policy to stop mis-use in view of the easy availability.
“Pharma Vision2020” has been launched by the Government of India to make India a Global Leader in end-to-end drug manufacture.
The Drug price control Oder and National Pharmaceutical Pricing Authority has been implemented to deal with issue of affordability and availability of medicines.
Road Ahead 5
Medicine spending in India is expected to increase at 9-12 % CAGR between 2018-22 to US$ 26-30 billion, driven by increasing consumer spending, rapid urbanization, and raising healthcare insurance among others.
Going forward, better growth in domestic sales would also depend on the ability of companies to align their product portfolio towards chronic therapies for diseases such as such as cardiovascular, anti-diabetes, anti-depressants and anti-cancers that are on the rise.
The Indian government has taken many steps to reduce costs and bring down healthcare expenses. Speedy introduction of generic drugs into the market has remained in focus and is expected to benefit the Indian pharmaceutical companies. In addition, the thrust on rural health programmes, lifesaving drugs and preventive vaccines also augurs well for the pharmaceutical companies.
Key players in Pharmaceutical industry in India 4
Sun pharmaceutical Industries ltd.
The company was established in the year 1983 by Fillip Shanghai. Currently the company is functioning in more than 150 countries all over the world. Another pharmaceutical giant, Ranbaxy laboratory bought this company in the year 2014.This is now the largest company in India. The net market capitalization of this company is about Rs.1,89,139crores. Well known for producing medicines for diabetogenic, Gastroenterology and cardiology.
LUPIN is a transnational pharmaceutical company, established in the country in the year 1968. This company produces about 5500 Products in the field of neurology, cardiology, diabetogenic and other therapeutics. The net market capitalization of this company is estimated to about Rs76,613 Crores.
Dr. Reddy’s Laboratories.
This company was established in the year 1984. Right now, the market capitalization of this company is estimated to be about Rs 50,103 Crores. They produce more than 200 pharma products. They have their market spread in over 20 countries all around the world. They are expertise in the production of medicine for dermatology, cardiology, gastroenterology and a lot more.
It currently employs more than 20000 employees all over. Thus, company was established in India in the year 1935.the company is functioning in more than 150 countries all over the world at the moment. The net capitalization of this company is about Rs48,788 Crores. They are producing about 2000 products in the field of cardiology, neurology, nephrology and diabetogenic.
Aurobindo Pharma Limited
Aurobindo Pharma Company was established in the year 1986. The Pondicherry unit was established in the year 1988-89. This company has about 6 manufacturing units all over the India and carries out marketing in many other parts of the world. They are chief producers of medicines for neurology, cardiology, gastroenterology and any other files. The market capitalization of this company is estimated to be about Rs47,588 Crores.
Cadila Pharmaceuticals limited
Cadillac pharmaceuticals Limited was established in the year 1951. The headquarters of this company is located at Ahmedabad. They mainly produce medicines for cardiology, gastroenterology, neurology and in pulmonology. This company has the production capacity of about 3500 million tablets every year. This company at 6th place is estimated to have a net market capitalization of this company is about Rs31,542 Crores.
Divi’s laboratory is one of the Indian pharmaceutical companies which was established in the year 1990.The market capitalization of this company is about Rs28,609 Crores. They are widely known for their products in the fields such as cardiology, dermatology and diabetogenic and others.
GlaxoSmithKline is a British pharmaceutical company. The Indian company was established in the year 1924.They are known to produce various products even in the field of dermatology, cardiology, respiratory and a lot other more including some of the well renowned products like Sensodyne, Horlicks, Flovent, Abreva, Nicoderm, Advair, Nicorette, Avodart, Augmentin. The net market capitalization of this company is estimated to be about Rs26,954 Crores.
This company has a net market capitalization of about Rs. 23,410 Crores. Glenmark was established in the year 1977.Currently the company is working in more than around 90 countries all around the world. The company carries the fame for bagging the best pharmacy company in Emerging Markets Awards several times.
The net market capitalization of this company is about Rs. 22,392 Crores. This company currently occupies 10th position in this top ten Pharma companies in India for it having a wide market with some of the blockbuster drugs under its name. This cows started in the year 1969.
About the Company 2
Lupin is a transnational pharmaceutical company based in Mumbai. It is the 2nd largest Indian pharmaceutical company by sales, rank 4th in the US by prescriptions (5.3% market share – IMS Health) and are the 6th largest generic pharmaceutical player in Japan (IMS Health). FY 2017 recorded the highest-ever investment in research and development with new developments in complex generics like Inhalation, Biosimilars and Complex Injectables. Through the continued focus on R;D, the company now have 368 ANDA filings with the US FDA, of which 214 have been approved to date. The company also have 45 First-to-File (FTF) filings including 23 exclusive FTF opportunities.
There were multiple milestones that the company hit during the year. An important one was the acquisition of the branded product portfolio from Shionogi in Japan which comprised of 21 long-listed products across therapy areas such as Central Nervous System (CNS), Oncology, Cardiovascular and Anti-Infectives.
The Performance Matrix 2
SENIOR MANAGEMENT TEAM 2
Founder Late Dr. Desh Bandhu Gupta
Chairman Mrs.Manju.D. Gupta.
Vice Chairman Dr. Kamal K. Sharma
Chief Executive Officer Ms. Vinita Gupta
Managing Director Mr. Nilesh Gupta
Chief Financial ; Executive Director Mr. Ramesh Swaminathan
Dr. Rajender Kamboj President Novel Drug Discovery ; Development
Mr. Naresh Gupta President API ; Global TB
Mr. Alok Ghosh President Technical Operations
Dr. Cyrus KarkariaPresident Biotechnology
Mr. Sunil Makharia President Finance
Mr. Yugesh Goutam President Global Human Resources
Mr. DebabrataChakravorty President Global Sourcing ; Contract Manufacturing
Mr. Rajeev Sibal President India Region Formulations
Mr. Paul McGarty President Lupin Pharmaceuticals Inc., USA
Dr. Sofia Mumtaz Head Pipeline Management and Legal
Mr. Martin Mercer President Latin America
Dr. Thierry Volle President Europe, Middle East,AfricaDr. Fabrice Egros President Asia Pacific ; Japan
Dr. Kurt Nielsen President Somerset, USA
Mr. NoriakiTsunodaPresident Kyowa Pharmaceutical Industry Co., Ltd., Japan
Vision of the company 2
“To be an innovation led, transnational Pharmaceutical Company”
Human resource audit is a comprehensive method of objective and systematic verification of current practices, documentation, policies and procedures prevalent in the HR system of the organization.
An effective HR audit helps in identifying the need for improvement and enhancement of the HR function. It also guides the organization in maintaining compliance with ever-changing rules and regulations. Hr audit, thus, helps in analysing the gap between ‘what is the current HR function’ and ‘what should be/could be the best possible HR function’ in the organization.
The HR audit includes six steps:
Determine the scope
Develop a plan
Gather and analyse the data
Produce a report
Create an action plan
Evaluate the progress
Primary components of the HR system which are generally audited include: documentation, job descriptions, personnel policies, legal policies, recruitment and selection, training and development, compensation and employee benefit system etc.
The project includes: Auditing of 1348 employees (active employees) and maintaining the DMS excel sheet.
Project timeline: started auditing the 1348 files on 7th May 2018 and completed 1348 on 7th June 2018.
Per day files to audit: 60 files/day.
Findings: After auditing 1289 files, the major concern areas which occurred during documentation ; auditing were as follows a) ID proof b) Appointment letter ; Offer letter c) Missing documents ; files.
The above-mentioned problem areas were found based on a survey (questionnaire) taken from the company’s employees working in IRF-HR department and through the data interpretation of DMS excel sheet.
The questionnaire contains questions related to importance of auditing and documentation, the problems caused due to missing documents etc.
Objective of the study
The main objective to conduct this research “To audit the personal files of employees who joined since April 2016 to March 2017 and submission of the critical report along with the suggestions to improve the compliance.”
b. Primary Objective
To study and understand the importance of various documents and process of documentation in the HR department.
To understand and get the concept of HR auditing.
To get the practical implication of the process involved.
c. Scope of the study
The project scope involves the study of various documents involved in the documentation process and the tools or techniques to improve the compliances.
The project scope also involves the finding of compliances in the documentation process and suggesting a suitable solution to improve the compliances based on the data collected.
d. Managerial Usefulness of the Study
The study helps to understand relation between the Human Resource and HR operations. Also, the impact of compliances on the efficiency and functioning of the department.
e. Research Methodology
A questionnaire was prepared to understand the current situation, problems faced by the employees etc.
Survey has been done within the company by circulating the questionnaire amongst the IRF (Indian Region Formulations)- HR team.
Response of the concerned person were thoroughly analysed.
Conclusion had been arrived at using the qualitative response of the concerned people and the quantitative data.
f. Research Process
The given DMS (Document Management System) excel sheet consists of various documents listed according to the codes.
Every document type is given a document code listed below:
Document type Document Name
Employees colour photograph A0
Resume and Application form A1
Offer letter copy A2
Acceptance of offer letter A3
Joining docket A4
Pre-employment medical check-up Report A5
Workflow joining confirmation A6
Appointment letter A7
Acceptance of appointment letter A8
Background verification report A9
Testimonials-10th Marksheet and or certificate A10.1
Testimonials-12thMarksheet and or certificate A10.2
Testimonials-Post Graduation A10.5
Testimonials-ID proof A10.7
Testimonials-Cheque copy A11.1
Previous company 1 to 7 A11.2-A11.8
Entrance test pre-joining A11.9
PAN card copy A12.3
The DMS (Document Management System) excel which consists of employee from sales department with different designations such as Marketing executives, Medical representatives, Area Sales Managers etc. the data was then classified according to the colour codes depending upon the type of compliance.
2091690359410Figure-f.1 DMS excel sheet
4000020000Figure-f.1 DMS excel sheet
Colour codes representation:
Red colour- It represents that the document is not present in either of the destination i.e. DMS and the file.
Blue colour- It represents that the document is updated in the DMS but not present in the file.
GREY colour- It represents that the document is not updated in the DMS but is present in the file.
Orange colour- It represents that the file is misplaced or missing from the active employees list.
Here, DMS means Document Management System
CHECK = personal employee file (hardcopy)
g. Analysis and Interpretations
After analysing the above DMS excel sheet which was classified according to colour codes, following is the interpretation:
1514475137795Table-g.1 Document type missing data
00Table-g.1 Document type missing data
From the above data, the document type highlighted in the green is the major area of concerns. The document and the document type are as follows:
A2 & A3 (offer letter & Acceptance of offer letter)- the total number of missing documents from the personal employee files are 213 and 1253 of A2 & A3 respectively. The importance of these documents is that – onboarding begins at acceptance of offer letter and is crucial part in preventing quick quits. Because the process involves many hours of planning interviews and internal meetings are invested to turn a top candidate into a new employee.
A4 (Joining Report)- the total number of A4 missing from 1,348 personal employee files is 314. Although the number is less but the importance of the joining report is high since, it consists of information related to employee’s insurance, provident fund and a form 12B. hence, this document type also acts as a legal document.
A8 (Acceptance of appointment letter)- out of 1,348 personal employee files, 575 of the personal employee files does not contain acceptance of appointment letter. The absence of this document leads to IR (legal) cases i.e. industrial relations cases as it used as an evidence in such legal cases. It is a formal ; legal letter provided in writing to a candidate on the day of joining for employment. It is generally provided after offer letter.
A10.7 (ID proof-ADHAR card)- out of 1,348 employee files, 796 employee files do not have ID proof especially ADHAR card. It is important because It is used in PF money transfer. PF money will be given to the account holder who’ve registered their ADHAR number with the employee provident fund organisation (EPFO).
A12.3 (PAN card)- although the number of missing PAN card is less i.e. 83 but it is mandatory document for most of the financial transactions such as opening a bank account, receiving taxable salary or professional fees.
h. Graphical representation
i.Findings and insights
From the above graphs, the findings and insights are as follows:
The pie charts represent the total number of documents missing from the personal employee files and the total number of documents present in the personal employee files. Whereas the bar graph represents the further division of the missing documents i.e. NO based-on colour codes.
In the bar graph, the major area of concern is the Blue and Red colour codes since, the total of the two is the number of missing documents from the personal employee files which needs to be recovered from the employees of the company.
Apart from the above-mentioned insights, the findings from survey taken is as follows:
Auditing & documentation of file is important.
Missing of Appointment letter may lead to Legal issues (IR cases).
Filling documents in wrong file leads to misleading information.
Missing documents and wrong filing also affects efficiency of the department.
Reasons to keep several personnel files: some legal and some for employment best practices purpose.
Documentation supports the employer’s decisions and may protect the employer in a lawsuit.
They demonstrate the employer’s rationale behind hiring, promotions, transfer, rewards and recognition and firing decisions.
Figure-f.i.1 Survey response
Figure-f.i.2 Survey response
To overcome the above stated problem areas following are the recommendations:
Short-term recommendation: To recover the documents from the active employees, SMS alerts and WhatsApp notifications can be sent to the employees. Since, the DMS (data Management system) contains mobile numbers of every employee.
To develop application: To overcome the problem of missing documents and delay in retrieving the documents from the employees, a mobile application can be developed. The application would contain options like:
My LCI status (Interview)
My LKAT result (online aptitude test)
Track status: the candidate can track his/her application status via mobile application.
The above application will not only help in accelerating the process but will also help in improving the compliance of missing appointment letter, offer letter, ADHAR card, PAN card etc.
Long-term recommendation: To add a “CAREER” feature on their company official website. Also, the company can integrate with or merge the “CAREER” option with their existing mobile application “Medi buddy”.
File room: The personal employee files are kept in the file room, arranged as per the year and the Employee code (EMPCODE). The racks on which the files are kept is not labelled which creates a problem for another working employee who wants to access a particular file.
Therefore, the racks in the file room should be labelled, also a file tracking system can be implemented to keep the track of files. This will in turn reduce the problem of missing files.
Personal employee file tracking system: Its provides complete control over the information. File tracking system allows an employee to locate any item quickly and precisely no matter where in the office it is located.
•User will have to enter password to access the file tracking system.
•After logging in, user will define the following information: employee code (EMPCODE), employee name. i.e. enter the file data in the tracking system.
•The file data: subject of file, Empcode, current date, define priority, department, initiator name, next destination of the file
RFID tracking system: RFID tracking system technology is ideal for environments where the volume of transactions is high, files moves through many steps.
An RFID transponder is applied to a file.
A user registers the file into a software database by “reading” the RFID enabled file with a small desktop RFID reader.
The file is then tracked throughout an office building as it travels through various rooms using additional RFID readers that are positioned in strategic locations such as doorways and hallways.
Employees carrying files are also recorded in the system as they carry the files throughout the office.
The system is managed using a web browser interface and the customer can locate a specific file or set alarms on groups of files.
An alarm will sound if a sensitive file leaves a room.
A handheld RFID reader can be used to locate a specific file in a file cabinet.
The project title given was “AUDIT OF PERSONAL FILES AND COMPLIANCE ADHERENCE”. It involved auditing of 1,348 personal employee files who joined since April 2016 to March 2017. Auditing is done to identify the need for improvement and enhancement of the HR function. It also guides the organization in maintaining compliance with ever-changing rules and regulations.
After auditing 1,348 the results were as follows:
Where, No is the number of personal employee files in which that specific document is missing. Here, the major area of concerns is the RED, BLUE and NO.
Therefore, from the above findings it can be concluded that proper documentation process is necessary for an organisations efficiency. Hence, were the recommendations such as SMS and WhatsApp notifications, file tracking system, developing a mobile application, etc.
Apart from the digitalization, some changes in the existing recruitment & selection process may also help the company in retrieving the documents from the new recruits and the existing employees. Recommendations such as for the new recruits, if the candidate has not completed their documentation process, their employee code won’t be generated for a specific period. This procedure will reduce the delay in collecting each document and, will increase the efficiency of the HR department.
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