INTRODUCTION

Rewards and Recognition can be powerful tools for employee motivation

and performance improvement. Reward means something given for

performance. Recognition is an important feature in retaining excellent

employees and for improving performance. Many types of rewards and

recognition have direct costs associated with them, such as cash bonus stock

awards, and wide variety of company paid perks. The primary objective of

providing Reward and Recognition is to encourage and motivate the employees

to do better performance Rewards and Recognition are one of the motivation

aspects in Human Resources.

Rewards and Recognition are given to achieve desired goals. Rewards

system should be closely aligned to organizational strategies. These strategies

could be designed to faster innovation to provide unique products or services.

Rewards and recognition may be monetary, or non-monetary. Monetary rewards

include cash bonus, stock awards, company paid perks, gift certificates. Non

monetary rewards and recognition including compliments, extra time off,

ceremonial awards, and small trinkets such as mugs, t-shirts, sets of pens and

pencils. Rewards and Recognition are very useful to reinforce good

performance.

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Pharmaceutical Industry:

The pharmaceutical industry is one of the largest and the most exciting

sectors to be working today. It is a rapidly changing environment where many

advances have taken place over the past 20 years. Furthermore, it will continue

to develop and evolve at an ever-increasing pace over the next decade. New

drugs, new technologies and exciting new discoveries have driven this

evolution. Pharmaceuticals are the medicinally effective chemicals which are

converted to dosage forms suitable for patients to imbibe. In its basic chemical

form, pharmaceuticals are called bulk drugs or active pharmaceutical

ingredients (APIs) and the final dosage forms are known as formulations.

Active pharmaceutical ingredients or bulk drugs are derived from four

types of intermediates (raw materials), namely.

♦ Plant derivatives (herbal products)

♦ Animal derivatives e.g. insulin extracted from Bovine Pancreas

♦ Synthetic chemicals

♦ Biogenetic (human) derivatives e.g. human invectives

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Classification of pharmaceuticals

The Registration Regulation which ran into force on March 2nd, 1996

suggests the classification of pharmaceuticals as prescription or non-

prescription on their stage of registration or registration renewal. Almost all of

the pharmaceuticals which are supplied to healthcare services are in the extent

of prescription pharmaceuticals. But in practice, nearly all of the

pharmaceuticals except narcotics and psychographs may be purchased without

prescriptions from pharmacies.

The ministry of Health, in the context of its studies on harmonization to

EU pharmaceuticals regulations with a regulation published on April 27th, 1996

permitted the public advertisement of non-prescription pharmaceuticals. But, on

the trial opened by the application of Turkish Union of Pharmacists, the Council

of State took the decision of stopping the execution. For this reason, no further

development could be recorded later than the regulation published on April 27th,

1996 on the legislation related with pharmaceuticals.

Basing on the Registration Regulation which ran into force on March 2nd,

1996 the Ministry of Health turned the license status of many pharmaceuticals

applied for registration and many pharmaceuticals in the same category existing

on the market to the status on non-prescription pharmaceuticals.

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 Due to some practices in basic applications like promotion, pricing,

registration, packaging information on prescription and non-prescription

pharmaceuticals, a quite different appearance than the EU centuries to which we

are targeting to harmonies came out.

It must be paid attending that, as in all European counties, the application of

“non-prescription pharmaceuticals” is formed of the following conditions and

the arrangement should be made synchronously.

 The classification of pharmaceuticals existing in the market.

 Freedom in pricing.

 The reimbursement in defined conditions.

 The placement of promotion Regulation to life and the determination of

promotion princes for those pharmaceuticals

 The rearrangement of packaging information.

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 WORLD PHARMACEUTICAL MARKET

World Pharmaceutical Market (in US$ bn)

Year 2001 2002 2003 2004 2005 2006 2007 2008 2009
Size 292.0 294.8 304.2 338.0 373.0 406.9 438.0 469.4 505.8
Source: Global Pharma Forecasts

Production of Active Pharmaceutical Ingredients (API)

Total US$ 49.8bn 2005 GEN, 22,6, 15-03-2004

US$ 77.4bn 2009
Brand named Products US$ 43.4bn 2005 GEN, 22,6, 15-03-2004
US$ 65.8bn 2009
GEN + Genetic Engineering News

2008 Global Pharmacy Sales by Region

World Audited Market 2008 Sales ($bn) % Global Sales ($) % Growth (constant $)
North America 229.5 49 +11
European Union 115.4 25 8
Rest of Europe 14.3 3 14
Japan 52.4 11 3
Asia, Africa and Australia 37.3 8 12
Latin America 17.4 4 6
Total $ 466.3bn 100% +9%
Source: IMS World Review 2009

Objectives of the Study:

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 To understand the extent to which the rewards & recognition provided by

the Dr. Reddy’s laboratories ltd., towards their employees.

 To know the motivation and satisfaction level of the employees through

the rewards & recognition provided by the Dr. Reddy’s laboratories.

 To examine the Rewards & Recognition incorporation units multiple

industry.

Need for the Study:

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 Dr. Reddy’s Laboratories Limited has been in the Pharmaceutical

Industry since many years and witnessing their expertise in this pharma field it

was obvious that they had soon marked a name for themselves in the global

pharmaceutical industry. Dr. Reddy’s Laboratories Limited, today

internationally has its presence in majority of the countries around the world.

To motivate the employees to improve their excellence in performance,

Dr. Reddy’s Laboratories limited providing many rewards & recognitions to

their employees, and satisfy the employees to work in esteem organization.

More specifically the project aim is to know the Rewards & Recognition

provided by the DRL to their employees, and how much the Rewards &

Recognition are affecting the employees and as the company growth.

Scope of the Study:

Rewards and Recognitions are important tools for any organization to

motivation the employees to improve the performance. Because money isn’t

everything when it comes to keeping your employees motivated. The subject of

Rewards and Recognition covers monetary rewards and non monetary reward,

recognitions, awards. More specifically we may examine that how useful

Rewards and Recognition are in a company to achieve a target. The scope of

the study is to know the total reward system in the DRL.

RESEARCH METHODOLOGY

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The researcher mainly based on two sources of the data via:

(i) Primary source

(ii) Secondary Sources

Primary source:

The primary source of data is applied for getting the required and relevant

information directly from the department heads in the course of discussion with

Jr. Managers. The following are the data collected through primary source.

a) The Different rewards and recognition provided by the Dr. Reddy’s

laboratory.

b) Refreshment courses conducted in the integrated product Development.

c) About the course covered through discussion with the employees &

through questionnaire.

Secondary Source:

The secondary source of data was collected through obtaining rewards

and files from the integrated product development unit of Dr. Reddy’s some

part of Data was collected from the Internet. The institutional guide gave us the

remaining necessary information and the staff relating to administration gave

me all the necessary information to complete the study.

Sample Study:

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 The sample selected for gathering the data is based on ‘random sampling’

technique to give rewards to the Dr. Reddy’s employees a sample size of 50

employees was considered, who underwent job related to rewards and

recognition centre in Dr. Reddy’s.

Analysis:

The data has been analyzed after collection and a study was made by

classifying tabulating and drawing graphs in order to draw conclusions to the

subject.

Limitations of the Study

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 Time was the major constraint as the mentioned period was not enough to

collect the data in detail.

 Secondary source information availability was largely restricted to

internet and online journals.

 A sample size was restricted to only 50 employees.

 Lack of secondary sources such as magazines.

 The collected information mainly depends on the interviews, survey

findings and the Internet.

Design of the Study

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Chapter I - First Chapter covers the Introduction part which

Includes objectives, Need, Limitations and Methodology.

Chapter II - Second Chapter cover the profile of the organization.

Chapter III - Third Chapter covers the concept of the Rewards and

Recognition, Need and Objectives, Guide Lines, Informal

Rewards, Non-Monetary Rewards and Recognition’s, Seven

Recognition’s do or don’t.

Chapter IV - fourth Chapter covers the Data Analysis and

Interpretation.

Chapter V - Fifth Chapter Covers the Conclusion, Suggestions.

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 INDIAN PHARMACEUTICALS MARKET

The Indian pharmaceutical industry is a success story providing employment for

millions and ensuring that essential drugs at affordable prices are available to

the vast population of this sub-continent.

-Richard Gerster

The Indian Pharmaceutical Industry today is in the front rank of India’s

science based industries with wide ranging capabilities in the complex filed of

drug manufacture and technology. A highly organized sector, the Indian

Pharmacy Industry is estimated to be worth $ 4.5 billion, growing at about 8 to

9 percent annually. It ranks very high in the third world, in terms of technology,

quality and range of medicines manufactured.

Playing a key role in promoting and sustaining development in the vital

field of medicines, Indian Pharmacy Industry boasts of quality producers and

many units approved by regulatory authorities in USA and UK. International

companies associated with this sector have stimulated, assisted and spearheaded

this dynamic development in the past 53 years and helped to put Indian on the

pharmaceutical map of the world.

The Indian Pharmaceutical sector is highly fragmented with more than

20,000 registered units. It has expanded drastically in the last two decades.

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 The leading 250 pharmaceutical companies control 70% of the market

with market leader holding nearly 7% of the market share. It is an extremely

fragmented market with severe price competition and government price control.

The pharmaceutical industry in India meets around 70% of the country’s

demand for bulk drugs, drug intermediates, pharmaceutical formulations,

chemicals, tablets, capsules, orals and injectibles.

There are about 250 large units and about 80000 Small Scale Units,

which form the core of the pharmaceutical industry in India (including 5 Central

Public Sector Units). These units produce the complete range of pharmaceutical

formulations i.e., chemicals having therapeutic value and used for production of

pharmaceutical formulations.

Advantage Indian:

Competent workforce: India has a pool of personnel with high managerial and

technical competence as also skilled workforce. It has an educated work force

and English is commonly used. Professional services are easily available.

Cost-effective chemical synthesis: Its track record of development, particularly

in the area of improved cost-beneficial chemical synthesis for various drug

molecules is excellent. It provides a wide variety of bulk drugs and exports

sophisticated bulk drugs.

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Legal & Financial Framework: India has a 53 year old democracy and hence

has a solid legal framework and strong financial markets. There is already an

established international industry and business community.

Information & Technology: It has a good network of world-class educational

institutions and established strengths in Information Technology.

Globalization: The country is committed to a free market economy and

globalization. Above all, it has a 70 million middle class market, which is

continuously growing. India has achieved global recognition as a low cost

producer and supplier of quality bulk drugs and formulations to the world.

Exports:

Over 60% of India’s bulk drug productions are

exported. The balance is sold locally to other formulators. India’s

pharmaceutical exports are to the tune of Rs 87 bn, of which formulations

contribute nearly 55% and the rest 45% comes from bulk drugs. Imports have

registered a CAGR of only2% in the past 5 years. Import of bulk drugs have

slowed down in the recent years. The Bulk Drug industry contributed Rs. 5100

Crores of export a year.

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 The Indian pharmaceutical industry is also getting increasingly USFDA

compliant to harness the growth opportunities in areas of contract

manufacturing and research.

Indian companies such as Ranbax, Sun Pharma, and Dr. Reddy’s are

increasingly focusing on tapping the U.S. generic market, projected to be

around.

Issues in the India Pharmaceutical Industry:

 Currently only process patents are recognized in India. However, by virtue

of India being a member of the World Trade Organization (WTO) it is bound

to recognize product patents by 2009.

 The drug price control order (DPCO) continues to affect the industry

adversely. This has increased the profitability of the sector.

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 COMPANY PROFILE

Dr. Reddy’s Laboratories

The company was incorporated by Dr. Anji Reddy in 1984. Over the

years DRL (Dr. Reddy’s Lab) has successfully transformed itself from a

reverse engineering and bulk drug company to a research driven, formulation

based pharmaceutical company. The company has a major presence in anti-

infective, gastro-intentional, pain management and cardiovascular therapeutic

segment. Currently six of its brands are among the top 300-pharma brands in the

country. DRL is among the fastest growing companies in the domestic

formulations market and is set to emerge as the third largest pharmaceutical

company behind Glaxo and Ranbaxy after its merger with Cheminor Drugs and

American Remedies.

DRL has transformed itself from process engineering and research driven

pharmaceutical company in the past 6 years. The company achieved several

landmarks in 2001 with its ADR issues, launch of generic Fluxetine in the US

and licenser of anti diabetic molecule to Novarties.

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Currently DRL manufactures over 100 bulk actives and serval key intermediates

at their six bulk actives facilities, all of which are c GMP – complaint and

USFDA inspected.

All the activities are carried out in-house, supported by the indigenous

strengths in analysis, testing, organic synthesis, process development and a

controlled supply chain.

It constantly strives to innovate and develop technological and

commercial skills to build capabilities for specially products. DRL’s customer-

focused marketing and support strategies gave an access to a wide and versatile

range of products, combined with the advantage of fast and responsive single-

point interaction.

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Mission Statement

Dr Reddy’s foundation believes in the interest motivation and capacity of

the human being for progress, given the right environment.

Vision

To become a discovery-led global pharmaceutical company.

Values

DRL is a value driven organization with a strong focus on the following

elements:

 Quality: DRL is dedicated to achieve the highest level of quality in

everything it does to delight its customers.

 Innovation & continuous learning: The Company provides an

environment of innovation and learning that fosters, in every employee, a

desire to excel and willingness to experiment.

 Truth & Integrity: Its business practices are guided by the highest

ethical standards of truth, integrity and transparency.

 Respect for the Individuals: DRL tries to bring out the best in

individuals by valuing diversity and nurturing team sprit, individual

development and self-esteem.

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DR. REDDY’S STRATEGIC BUSINESS UNITS

1) Branded Finished dosages

2) Generic finished dosage

3) Bulk actives

4) Custom chemicals

5) Bio-technology

6) Diagnostics

7) Critical care

8) Discovery research

BRANDED FINISHED DOSAGES

Dr. Reddy’s has a leading presence in India and the world market for

value-added branded finished dosages. They over the years acquired a strong

reputation for their quality branded formulations. Their state – of-the – art

R & D facilities develop formulations and prepare bio-batches and finished

dosages in line with global regulatory requirements. This has helped them carve

a niche for themselves in the world market. Dr. Reddy’s international operation

span Asia, Africa and Latin America. With the help of joint-ventures, Dr.

Reddy’s have become one of the leading Indian pharmaceutical companies in

Russia, CIS Counties, Latin America, Africa and China.

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GENERIC FINISHED DOSAGE

Innovative products worth US$ 60 billion are likely to go off patent in the

next 8-10 years in the regulated markets. Dr. Reddy’s recognized this

opportunity for further expansion. Dr. Reddy’s Generic Finished Dosages

business, operational since 1998, will target over 60% of the Drugs going off

patent from 2002-2008. Their pipeline of Generic Finished Dosages, backed by

State-of-the-art infrastructure and top-quality professionals makes this a viable

proposition.

BULK ACTIVES

The bulk Actives business caters to the needs of both Innovators &

generic Formulators worldwide. Dr. Reddy’s manufactures about 100 bulk

actives and several key intermediates. Dr. Reddy’s have 6 bulk actives

manufacturing facilities, which are CGMP approved and USFDA inspected.

Their expertise in organic synthesis, process development and a controlled

supply chain enables them to provide you with high quality Bulk Actives at

competitive prices. They are aggressively building their product portfolio to

cater to the generic and patent challenge formulators in regulated markets and

the generic players in emerging markets.

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Custom chemicals

Their Custom Chemical serves (CCS) business unit caters to the

following needs of pharmaceutical companies that wish to out source their

requirement.

 CONTRACT RESEARCH

 CUSTOMER SYNTHESIS

 CONTRACT MANUFACTURING

BIOTECHNOLOGY

Dr. Reddy’s Biotechnology division deals with therapeutics, vaccines and

diagnostics, Molecular biology, cell culture fermentation, downstream

processing and hybridism technology are the focus areas.

Dr. Reddy’s is the first company in India to develop a molecule from the

molecular biology stage to production. Dr. Reddy’s identified bio-generics as a

significant market area; they are in the process of setting up bulk recombinant

protein production sites and formulation facilities that meet USFDA

specifications Dr. Reddy’s have a pipeline comprising of several recombinant

proteins in various phases of development for treatment of cancer, diabetes and

cardiovascular diseases.

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CRITICAL CARE

Launched in 1998, Dr Reddy’s Crucial Care Division (CCD) caters to

specialty segment like Oncology. It strives to create a strong base for a

sustainable long-term competitive advantage.

ACHIEVEMENTS OF DR. REDDY’S LABORATORIES

2003: The Far Eastern Economic Review magazine has ranked Dr. Reddys

among the ‘Top 200’ companies in Asia, and among the ‘Top 10’ in India.

2002: The first overseas acquisition of BMS Laboratories Limited and Meridian

Healthcare, UK.

2001: On April 11, Dr. Reddy’s became the first Asia Pacific pharmaceutical

company, outside Japan, to list on the New York Stock Exchange. Dr. Reddy’s

out licenses Dr. F 4158 to Novarties for up of US$ 55 million upfront. It is a

milestone payment for specific clinical and regulatory endpoints.

Dr. Reddy’s is the first Indian pharmaceutical company to obtain 180-day

exclusive marketing rights for a generic Drug in the US market with the launch

of Fluoxetien 40mg capsules on August 3, 2001.

2000: Dr. Reddy’s becomes India’s third largest pharmaceutical company with

the merger of Cheminor Drugs Limited, and the acquisition of American

Remedies Limited. Reddy’s US Therapeutics, a wholly-owned subsidiary is

launched in the U.S.

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1999: Dr. Reddy’s acquires Chennai-based American Remedies Limited.

1998: Dr. Reddy’s license anti-diabetic molecule, DR.F 2725, to Novo Nordisk.

1997: The company license anti-diabetic molecular, DR.F 2593, to Novo

Nordisk. First NDA filed.

1995: Sets up a Joint Venture in Russia.

1994: Makes GDR issue of US$ million when the foundation stone was laid for

a generic formulations facility to cater to highly regulated markets.

1993: Dr. Reddy’s Research Foundation is established and becomes

operational.

1991: Dr. Reddy’s commences first exports of its formulations to Russia.

1990: Dr. Reddy’s for the first time in India, exports Norfloxacin and

Ciprofloxacin to Europe and Far East.

1988: Dr. Reddy’s obtained its first USFDA approval for Ibuprofen and started

formulations operations.

1986: Dr. Reddy’s enters international market with exports of Methyldopa and

goes public.

1984: Dr. Reddy’s is established with an initial capital of Rs.25 lakhs.

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Dr. Reddy’s Pharmaceutical Market

What started 18 years ago as a single facility in Hyderabad, has now

transformed into six multi-ton, multi-location, state-of-the art facilities that

currently make over 100 bulk actives and several key intermediates. Dr.

Reddy’s offers an unparalleled portfolio to its customers, who include

innovators and generic formulators worldwide. The company’s operations are

fully integrated though global Supply Chain Practices and ERP systems, which

enable faster response and service to customers across the world.

21% growth in revenue is in the bulk active business. Export revenue

increased by 14%

DRL produces around 60 molecules and deals with over 100 molecules.

There are about 350 API’s in India.

Manufacturing capabilities

Our bulk manufacturing operation across six units in the state of Andhra

Pradesh in India, have a total manufacturing capacity of over 1800 KL. These

facilities are built and operated according to the latest systems of CGMP. Our

facilities are approved by the USFDA and other reputed international inspection

agencies for all our major products. State-of-the-art equipment and instruments

give us the edge to compete globally.

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 The infrastructure, with its optimum installed capacities and capital cost

has given us sustainable competitive cost advantage. We have superior technical

& innovation capabilities courtesy. Our people have repeatedly proven their

ability to rise to challenges. All their operations are supported by fully

integrated supply chain practices and ERP systems (SAP R/3) which enable

them to provide a faster response and service to their gamut of customers across

the world.

As an environmentally responsible organization, their manufacturing

operations are equipped with state-of-the-art effluent treatment facilities,

including aeration evaporation system and zero discharge facilities. Their

operations and infrastructure are engineered to optimize solvent and by-product

recoveries. The comprehensive manufacturing services include R&D labs, pilot

plants, technical services, quality control and quality assurance.

Bulk Actives Business

Review of Bulk Actives Business:

During the year, the Bulk Actives business recorded a turnover of Rs.

4312mn, with exports accounting for 67% of the sales. The bottom line

considerably improved due to increased contribution from exports, cost

reduction achieved in certain products like Losartan and Ciprofloxacin and the

increased contribution from high profit products like Terbinafine.

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 With the successful FDA inspection of Miryalaguda Plant, all the six

Bulk Active plant are FDA approved. During the year, 30 new products were

registered across the globe. 14 new products were launched during the year.

International Bulk Actives Business:

The International Bulk Actives business contributes towards 67% of the

total Bulk turnover registering a turnover of Rs. 2879mn. US contributed

towards 39% of the international sales followed by Asia Pacific at 22% and

Europe at 15%.

Domestic Bulk Actives Business:

The Domestic Bulk business showed a growth of 11% to Rs.1433 mm.

This was a result of the shift in business focus towards the more profitable

international markets.

Outlook for Business:

In the financial year 2005s, the overall domestic export mix is expected to

be skewed more in favor of exports. In Bulk Actives SBU, the focus will be on

the regulated markets to realize better returns on the resources deployed. The

strategy will be to time the supply so as to be the first source generic alternative

to the top tier generic player through improved process for product selection,

IPR and delivery in terms of timing to market.

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 In Branded Formulations of SBU, the main focus in the Domestic

business will be on building up a strong therapeutic basket of products. This

will be done through moves like brand acquisitions building OTC/Natural

products portfolio and New Drug Delivery System (NDDS) development in

current therapeutic areas enabling portions of the Supply Chain Management

(SCM) will enable us to further exploit future opportunities. In the International

Formulations business, the focus will be supplemented by strategies like

introduction and expansion into more profitable segments of oncology and

biotechnology, rationalization of product mix and OEM manufacturing in local

markets to overcome negative imports list.

DRL STRENGTHS :

 DRL stresses on the 3 most important parameters of drugs – Safety,

Quality (determined at API level) and Efficacy.

 Fully equipped pilot plant and sophisticated infrastructure

gives us a competitive edge in R&D operations – new product

introductions.

 Operated according to the latest systems of CGMP (compliance Good

Manufacturing Practices).

 Facilities are approved by the USFDA and other reputed international

inspection agencies for all our major products.

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 All our operations are supported by fully integrated Supply chain

practices and ERP systems (SAP R/3).

 State-of-the-art effluent treatment facilities, including aeration

evaporation systems and zero discharge facilities.

 Regulatory Strength (DRL has a strong RA department, dealing with

different countries and regions).

 Impurity profile is very good and DRL performs intense stability tests

because stability of bulk actives determines the stability of the

formulation drugs, i.e., if shelf life of bulk ingredients is “x” months, the

shelf life of the formulations cannot be more than “x” months.

 DRL is supposed to be the best in patent challenge. It was the first

Indian company to win a patent challenge (Fluoxitine), whereas Ranbaxy

is famous for its strong product pipeline (as soon as a patent expires, they

enter a market).

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 REWARDS AND RECOGNITION

Introduction:

Rewards are considered to be a function of efforts put in to reach the

standard set on the basis of accomplishment manifestation. In order to practice

this strategy managers setup standards of performance, monitor the behavior of

the employees to observe the extent to which these standards are attained and

allocate rewards & based on the observance of the performance. There rewards

can be applied only where performance and results can be directly and

quantitatively measured.

Recognition is an important factor in retaining excellent employees and

for improving performance. Recognition is important because it sends a

powerful message that the recipient is important. It says that the organization

cares about good performance. When this message is lacking overall

performance may drift in search of a direction. If low performers are treated the

same as high performers, the message will be translated that high performances

gets you no where. Eventually, many in the workforce will settle at some

minimal acceptable level of performance. Surveys of workers by the public

agenda forum have confirmed that most workers say they are working

“significantly below their potential”.

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Concept of Rewards and Recognition:

Like a child being given a chocolate cup cake and a big hug after cleaning

her room, rewards & recognition can be powerful tools for employee motivation

and performance improvement. Many types of rewards & recognition have

direct costs associated with them, such as cash bonus stock awards, and a wide

variety of company paid perks, like car allowances, paid packing and giving

certificates. Other type of rewards and recognition may be less tangible, but

still very effective.

These non-monetary rewards include formal and informal

acknowledgement, assignment of more enjoyable job duties, opportunities for

training and an increased in decision making. Recognition can be very

motivating and help to build feelings of confidence and satisfaction. Another

important goal is increased employee retention. An ASTD report on retention

research identified consistent employee recognition as a key factor in retaining

top-performing worker.

To achieve desired goals, reward system should be closely aligned to

organizational strategies. For example, a company focused on a product

differentiation strategy could design their rewards practices to foster innovation

to provide unique products or services. While a company focused on a cost

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reduction strategy might focus on rewards for ideas to minimize or eliminate

costs and employee stock awards to foster an on going cost reduction emphasis.

DEFINATION:

Rewards:

Jack Zigon defines rewards as “Something that increases the frequency of

an employee action”.

“Some thing given or received in recompense for worthy behavior or in

retribution for evil arts”.

“It is a satisfying return result or profit”.

“The return for performance of desired behavior is positive

reinforcement.

Recognition:

The art of power of knowing and, of perceiving the identify any

experience or memory with other experiences or memories, Physiologically,

recognition is based upon the simultaneous or consecutive activity of different

neuron groups, their comparison and the fact that the impulses are identical,

sensations may be compared with memories, memories with other memories

and the complexes produced by the recombination of the dissociated elements

of past experiences may be compared with memories or with sensations, and

recognition may follow.

The process of recognizing “Some thing or some one by remembering”.

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NEED FOR REWARDS AND RECOGNITION

Most employees feel that they are worth more than they are actually paid.

There is a natural disparity between what people think they should be paid and

what organizations spend in compensation. When the difference becomes too

great and another opportunity occurs, turnover can result. Pay is defined as the

wages, salary or compensation given to an employee in exchange for services

the employee performs in the organization.

Pay is more than "dollars and cents;" it also acknowledges the worth and

value of the human contribution. What people are paid has been shown to have

a clear, reliable impact on turnover in numerous studies.

Employees want to be recognized for a job well done. Rewards and

recognition respond to this need by validating performance and motivating

employees toward continuous improvement. Rewarding and recognizing people

for performance not only affect the person being recognized, but others in the

organization as well.

Through a rewards program, the entire organization can experience the

commitment to excellence. When the reward system is credible, rewards are

meaningful; however, if the reward system is broken, the opposite effect will

occur.

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 Employees may feel that their performance is unrecognized and not

valued or that others in the organization are rewarded for the wrong behaviors.

Unrecognized and no valued performance can contribute to turnover.

Recognition for a job well done fills the employees' need to receive

positive and honest feedback for their efforts. Recognition should be part of the

organization's culture because it contributes to both employee satisfaction and

retention. Organizations can avoid employee turnover by rewarding top

performers. Rewards are one of the keys to avoiding turnover, especially if they

are immediate, appropriate, and personal. A Harvard University study

concluded that organizations can avoid the disruption caused by employee

turnover by avoiding hiring mistakes and selecting and retaining top performers.

One of the keys to avoiding turnover is to make rewards count. Rewards

are to be immediate, appropriate, and personal. Organizations may want to

evaluate whether getting a bonus at the end of the year is more or less rewarding

than getting smaller, more frequent payouts. Additionally, a personal note may

mean more than a generic company award. Employees should be asked for

input on their most desirable form of recognition. Use what employees say

when it comes time to reward for performance (St. Amour, 2000).

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Designing a Rewards and Recognition Solution

In designing a rewards and recognition program, the following guidelines

should be considered.

 Rewards should be visible to all members of the organization.

 Rewards should be based on well-defined, credible standards that

have been developed using observable achievements.

 Rewards should have meaning and value for the recipient.

 Rewards can be based on an event (achieving a designated goal) or

based on a time frame (performing well over a specific time period).

 Rewards that are spontaneous (sometimes called on-the-spot

awards) are also highly motivating and should also use a set criteria and

standard to maintain credibility and meaning.

 Rewards should be achievable and not out of reach by employees.

 Non monetary rewards, if used, should be valued by the individual.

For example, an avid camper might be given a 10-day pass to a campsite,

or, if an individual enjoys physical activity, that employee might be given

a spa membership. The non monetary rewards are best received when

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 they are thoughtfully prepared and of highest quality. Professionalism in

presenting the reward is also interpreted as worthwhile recognition.

 Rewards should be appropriate to the level of accomplishment

received. A cash award of $50 would be inappropriate for someone who

just recommended a process that saved the organization a million dollars.

 Determining the amount of money given is a delicate matter of

organizational debate in which organizational history, financial

parameters, and desired results are all factors. Recognition for a job well

done can be just as valued and appreciated as monetary awards.

Formal recognition program can be used with success. First Data

Resources, a data processing services company that employees more than 6,000

individuals in Omaha, Nebraska, uses a formal recognition program (Adams,

Mahaffey, and Rick, 2002). Rewards are given on a monthly, quarterly, and

yearly basis, and range from Nebraska football tickets, gift certificates, pens,

plaques, mugs, and other items.

One of the most popular awards at First Data is called the "Fat Cat

Award" that consists of:

• $500 gift check

• Professional portrait of the employee

35
 • Appreciation letter from the CEO and senior management

• E-mails, phone calls, and notes from peers

In addition to Non monetary rewards, employees can be rewarded using

money in numerous ways. Cash is a welcome motivator and reward for

improving performance, whether at formal meetings or on the spot. Variable

bonuses linked to performance are another popular reward strategy.

Profit sharing and pay-for- skills are monetary bonus plans that both

motivate individuals and improve goal achievement. Small acts of recognition

are valuable for employee daily motivation. Sometimes a personal note may

mean more than a generic company award. In one survey, employees cited the

following as meaningful rewards (Moss, 2000):

• Employee of the month awards

• Years of service awards

• Bonus pay (above and beyond overtime) for weekend work.

• Invitations for technicians to technical shows and other industry events

36
Objectives of Rewards & Recognition:

 To increasing degree of responsibility.

 To motivate the employees to pursue their goals and reach their potential.

 To improve the quality of the product.

 To increase the productivity.

 To meet the competition.

 To create the right employee- management team environment.

 It is an atmosphere that is encouraging & favorable.

 To improve the employees self confidence.

 To create self esteem and royalty among employees.

 To encourage behavior of the employees to reach strategic goals.

People are motivated to higher levels of job performance by positive

recognition from their managers and peers. Creative use of personalized non-

monetary rewards reinforces positive behavior and improves employee’s

37
retention and performance. Non-monetary Rewards and Recognition can be in

expensive to give, but priceless to receive.

GUIDELINES FOR EFFECTIVELY REWARDING AND

RECOGNIZING EMPLOYEES

Studies indicate that employees find personal recognition more

motivational than money. Yet, it is a rare manager who systematically makes

the effort simply to thank employees for a job well done. The guidelines for

effectively rewarding and recognizing employees are simple; these are informal

manager-initiated performance based rewards:

 Match the reward to the person. Start with the individual's personal

preferences, reward him or her in ways he or she truly finds rewarding. Such

rewards may be personal or official, informal or formal, public or private,

and may take the shape of gifts or activities.

 Match the reward to the achievement. Effective reinforcement should be

customized to take into account the significance of the achievement. An

employee who completes a two-year project should be rewarded in a more

substantial way than one who simply does a favor for you. The reward

should be a function of the amount of time you have to plan and execute it

and the money you have to spend.

38
 Be timely and specific. To be effective, rewards need to be given as soon as

possible after the desired behavior or achievement. Rewards that come

weeks or months later do little to motivate employees to repeat their actions.

You should always say why the reward is being given.

 Once you have consistently rewarded the desired performance, your pattern

of recognition may become more intermittent as the desired behavior

becomes habitual with employees.

REQUIREMENTS FOR A SOUND BENEFITS PROGRAM

 The program should reflect the company's values and business strategy.

 Employees should participate in the development and execution of the

programs.

 The programs can involve cash, non cash or both.

 Since what is meaningful to you may not be meaningful to someone else, the

programs should encompass variety.

 The programs should be highly public to the company.

 The programs should have a short life span and must be changed frequently.

39
INFORMAL REWARDS

Informal rewards, meaning spontaneous, and forms of recognition that

can be implemented with minimal planning and effort by almost any manager.

In a recent study of more than 1,500 employees in dozens of work settings by

Dr. Gerald H. Graham, professor of management at Wichita State University,

the most powerful motivator was personalized, instant recognition from their

managers. "Managers have found," Graham adds, "that simply asking for

employee involvement is motivational in itself." In one of his studies,

employees perceived that manager-initiated rewards for performance were made

least often, and perceived that company-initiated rewards for presence ( that is,

rewards based simply on being in the organization) occurred most often. Even

though the first type of reward has the highest motivational impact and the

second type has lower of an impact.

Graham's study determined the top five motivating techniques:

1. The manager personally congratulates employees who do a good job.

2. The manager writes personal notes about good performance.

3. The organization uses performance as the basis for promotion.

4. The manager publicly recognizes employees for good performance.

40
5. The manager holds morale-building meetings to celebrate successes.

Only 42% of the respondents believed that their managers typically used

the top motivating technique in which a manager personally congratulates

employees who do a good job. The other top factors were perceived by less than

25% of the respondents as being typically used. Not only are informal rewards

more effective, but they tend to be less expensive. According to the "People,

Performance, and Pay" study by the American Productivity Center in Houston

and the American Compensation Association in 1987, it generally takes 5 to 8

percent of an employee's salary to change behavior if the reward is cash and

approximately 4% of the employee's salary if the reward is noncash.

NON-MONETARY REWARDS AND RECOGNITION:

Some of the most effective forms of recognition cost nothing at all. A

sincere word of thanks from the right person at the right time can mean more to

an employee than a raise, a formal award or whole wall of certificates or

plaques. Part of the power of such rewards comes from the knowledge that

someone took the time to notice the achievement, seek out the employee

responsible and personally deliver praise in a timely manner.

Research by Dr. Gerald Graham throughout the United States revealed

that the type of reward employees most preferred was personalized, spur-of-the-

moment recognition from their direct supervisors. In a recent survey of

41
American workers, 63% of the respondents ranked "a pat on the back" as a

meaningful incentive.

Since several studies on employees have shown that the greatest

influence on job satisfaction is the supervisor, any manager has all the

ingredients for achieving a high degree of satisfaction and a correspondingly

high level of performance among his or her employees.

RECOGNITION ACTIVITIES:

Many effective forms of recognition are one time events that celebrate a

significant achievement or a milestone. Such activities need to be planned so as

to be timely and pertinent to the situation and the person being recognized. A

recent survey by the Minnesota Department of Natural Resources found that

recognition activities contributed significantly to employees' job satisfaction.

Most respondents said they highly valued day-to-day recognition from their

supervisors, peers and team members. Other findings from the survey:

 68% of the respondents said it was important to believe that their work was

appreciated by others.

 63% agreed that most people would like more recognition for their work.

 67% agreed that most people need appreciation for their work.

42
 Only 8% thought that people should not look for praise for their work

efforts.

Nancy Branton, project manager for the survey, says, "Recognition

programs are more important now than in the past”. Employees increasingly

believe that their job satisfaction depends on acknowledgement of work

performance as well as on adequate salary. This is especially true of

employees who are highly interested in their work and take great satisfaction in

their achievements.

Reward strategies:

An effective employee recognition system inspires workers to switch off

automatic pilot and concentrate on daily tasks by turning the workplace into a

game with a series of specific, widely known, achievable objectives. One way

to do this is to target important tasks, give them point values, and allow

employees to earn points as these duties are carried out.

A total, such as 100, should be designated as the goal. The total points

employees need to earn a reward should be based on reasonable, not

exceptional, performance levels. Unlike incentive programs that drive

employees to achieve improbable goals, the key to this type of system is that it

rewards employees when their performance is average. Incentive programs tend

to create extreme peaks and valleys in performance. Any organization can adopt

43
this technique as long as management tailors the specific steps to its own

circumstances and makes a long-term commitment to the program.

The process of individual employee and work team recognition is

becoming a social science of its own. Various types of incentives are

increasingly being used to change the working culture of companies. It is clear

that the direction of a company can be changed - or at least substantially

influenced - by honest recognition of employee contributions.

A recognition system is important because it offers incentives for

improving quality and productivity. Yet, more important, a recognition system

makes a statement about what principles are important to a company.

Recognition is a form of employee motivation in which a company recognizes,

praises, and thanks employees who have made positive contributions to the

company's success, and must be consistent with a company's values and

principles. Guidelines for recognition systems are presented.

A firm's recognition and reward system must be properly structured,

communicated, and understood by everyone. To assist employees in

remembering the important recognition attributes and types of rewards to

consider when recognizing and rewarding teams and individuals, an alliterative

approach using the letter "a" may prove useful.

44
 To illustrate this, a team or individual should have the following

attributes to be considered for recognition of a quality activity:

1. An aggressive attitude.

2. Aptitude and ability.

3. Activity in application, and

4. Accomplishments and achievements.

Once candidates have been selected, the following rewards can be used to

show gratitude for their accomplishments:

1. Accolades.

2. Acknowledgment.

3. Awards, and

4. Appreciation.

Although managers often say their most valuable asset is their employees,
they do not always behave in ways that make employees feel they are truly
appreciated. Recognition-award programs are helpful in creating recognition
moments and in teaching praise techniques.

When expressing appreciation to employees and rewarding their good

behavior, employers should follow 3 important principles:

1. Describe the desired behavior in specific terms.

2. Explain why the behavior was helpful.

3. Express thanks.

45
 In addition, the significance of the event should correspond with the

amount of gratitude being expressed. Money is a particularly powerful incentive

for increasing sales and productivity, but some form of ongoing remembrance

of the award should also be given. When the recognition program is created,

employers should communicate the following ;

1. the program's objectives and why the company is sponsoring it.

2. the mechanics of the program.

3. the symbolism of the award, and

4. the way the program reinforces the company culture and values.

Today, many companies want to engender employee recognition. A

recognition program alone is unlikely to work with a disgruntled or unmotivated

work force. To be effective, a recognition program must be part of a whole

culture of valuing employees.

Many organizations have discovered low employee morale translates into

reduce productivity, absenteeism, and a high turnover rate. Motivational

techniques include:

1. raises and bonuses.

2. merchandise credit, and

3. spontaneous recognition and rewards.

46
 Cash rewards cost more and offer less leverage. Recognition is an honor

money cannot buy. Praise or a personal note acknowledging achievements are

small gestures that are extremely important to employees.

As companies re-examine the role of employees, a traditional idea is re-

emerging - recognition as a tool to motivate employees. Led by the service

award, recognition programs of all kinds are fulfilling people's needs for a kind

word. Today's employee service recognition programs are at least as

sophisticated and well-planned as any other modern business process. They are

communication-based, performance-focused and empowered with symbolism.

Companies taking a fresh approach to recognition programs see a process with

several important objectives:

1. opening channels of communication.

2. Enhancing individual worth and self-confidence.

3. reinforcing corporate values and culture.

4. recognizing personal performance and achievement, and

5. building mutual commitments and relationships.

According to a recent study comparing responses of supervisors and

employees to what each group thought employees wanted most, improving

morale is not a matter of paying people more. Responding employees indicated

47
that they want to be involved and appreciated and get personal satisfaction from

their jobs, not strictly monetary value.

Praise is an excellent way to reinforce desired behavior; however, it is not

the way to inspire it. If employees perform to certain standards simply for the

material reward promised, they will come to expect that kind of reinforcement

constantly and will be difficult to motivate in the absence of what they perceive

as commensurate material attention.

The key to motivating employees is to make them want to do the job well

for its own sake. Employees should see how they fit into the company's larger

scheme - how they tangibly contribute to the making of the product. Employees

whose donations are acknowledged will achieve high levels of personal

motivation and loyalty to the organization.

Employee recognition programs usually give the employee the choice of

an award gift. Many firms in the award business have developed catalogs that

can display a company's logo and special message; some employ substantial

marketing staffs to ensure that employee recognition programs work for the

companies purchasing their award items.

Today's intergenerational mix of employees is heterogeneous in makeup

and complex in nature, demanding that motivational efforts address diverse

lifestyles. Many long-service employees have conservative values and respond

48
to traditional symbols of appreciation with a focus on the corporate identity.

However, many midterm employees prefer choice and understated corporate

identity.

Today's young employees want peer recognition, thus traditional annual

achievement awards presentations are important to them. Other motivating

practices are also important to them, such as:

1. peer review.

2. bonuses.

3. stock options, and

4. assignments to special projects.

Effective reward management can help you achieve your business

objectives by attracting and retaining motivated, loyal and competent people. In

return for their commitment, people expect financial rewards such as salary,

fringe benefits, bonuses, promotions or stock options.

They will also seek other forms of reward such as recognition of

competence, achievement, responsibility, influence, and personal growth. The

challenge is to get the balance right to get the best results. You will need to

establish the relationship of the rewards to business and individual performance,

and make informed decisions about flexibility and fairness, the level of rewards,

market rates, pay structures, incentive/bonus schemes and benefits. The

49
following key points will help you manage reward to improve your business

results. Ensure that all reward programmes are aligned to business objectives.

Determine the present situation - typically you will have people with a

variety of packages. View, and communicate 'total reward' packages ensuring

each element is valued and has a distinct purpose.

Remuneration is a major cost for any organization, invest where the

maximum return will occur. 'One size' does not necessarily fit all. Target your

spend and tailor your reward programe for the different areas of your

organization. Ensure that the different elements of the reward package don't

overlap. For example, salespeople are often paid cash bonuses and receive

recognition awards.

Both elements are rewarding the same behaviour, don't pay twice.

Benchmark your pay and benefits against the market - there is no need to be

over generous when compared with your peer organizations. When reward

programs are successful, they should be linking to, and supporting, other people

issues.

Seven Recognition Do’s and Don’ts

Over the years that I have been involved with recognition processes, I

have developed a list of what I call “Recognition Do’s and Don’ts”. When one

ventures into recognition in the workplace, one will, invariably, make mistakes.

50
 So what are those elements of recognition that either make it succeed, or

produce results far below what was hoped?

1. Keep clear the distinction between recognition and incentives: An

incentive is an enticement advertised in advance to get people to do

something. Recognition is a “thank you” given after the fact.

2. Keep the recognition criteria wide open: Too many times organizations

will limit the criteria by which one can receive recognition. The committees

I have worked with found that there are so many opportunities for

recognition that it is virtually impossible to list criteria. A good recognition

committee can determine through consensus if a “thank you” is truly

deserved.

3. Nominations should be open to all employees: Management’s eyes cannot

be everywhere. Frequently, they will miss the outstanding performance on

the loading dock. Allow everyone in the organization the opportunity to

nominate some one for recognition. One of the greatest nominations our

committee ever received came from a pipefitter who had added two

eloquently written pages to the nomination to say what an outstanding

worker his partner was.

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4. Maintain confidentiality during investigations: All persons nominated for

recognition may not, in fact, be deserving. Keeping the process confidential

will help to avoid hurting someone, and bring crediability to the process.

The nominee’s supervisor and manager have a need to be included, as they

may be aware of other issues that may affect the committee’s decision.

5. Make the recognition special, not expensive: In the past, some of the

recognition committees felt that an expensive award of $300 or $400 sent a

more powerful “thank you”. However, as the dollar amounts climbed, the

“thank you” became lost somewhere. The recognition process became more

like an incentive program or contest. I even had a recipient tell me how

angered he was by how his recognition was handled, even though he

received $1000 from his company .A recognition award should be a “token”

of appreciation. A specially made (but inexpensive) certificate of

appreciation will hang in the den forever. Money, however, will be spent

and forgotten.

6. Include family in presentations when possible. This extends the

recognition and resulting “good feeling” to the entire family.

7. Use good judgment. When it comes to performing meaningful recognitions

nothing replaces good judgement. People seem to know when recognition is
deserved and how much is appropriate. Perhaps this is way recognition
committees serve such a valuable function.

52
 REWARDS & RECOGNITION IN DR. REDDYS LABORATORIES

Dr. Reddys Laboratories consider the Human Resources as the most

important of all the resources in the company. Therefore in its pursuit of

enriching the quality of its employees, to improve their performance, to

motivate its employees and to satisfy their needs, the company has providing

many Rewards & Recognition. These rewards motivate the employees to

improve their performance further. This in turn leads to self-commitment of the

employee to learn further, acquire latest skills & knowledge and to develop their

human resource. Non-monetary rewards are encourage the employees to

perform better.

The important Rewards and Recognition provided by the Dr. Reddys are:

Monetary Rewards :

1. Promotions.

2. Incentives.

3. Performance bonus.

4. Training.

5. Job rotation.

6. Work shops.

53
Non-Monetary Rewards :

1. Lunches and Dinner.

2. Celebrations.

3. Awards.

4. Certificate of Appreciation’s.

5. Small Trinkets.

6. Complements.

Promotion :

A promotion is the transfer of an employee or upwards advancement of

an employee in an organization to another job, which commands better

pay/wages better status/prestige, better walking environment and a higher rank.

These promotions will be given by the measuring the performance. The Dr.

Reddys provide this promotion to recognize individual’s performance and

reward him for his work so that he may have an incentive to forge ahead.

Employees will have little motivation if better jobs are reserved for outsides.

Incentives:

Dr. Reddy’s is providing the incentives to their employees to motivate

and reward the sales team with in an organization. Incentives are designed to

motivate and recognize participants for meeting exceptional level of

performance in supporting of company goals.

54
 Incentives often include small gifts like gift cards. Dr. Reddys provided

the incentives like travel packages, big name sporting events.

Performance bonus:

The minimum bonus is paid as per the payment of bonus Act 1965 to all
the employees who are working under organization. Dr. Reddys provide the
bonus as per the act as well as something given or paid in additional to what is
usual for the excellence performance of the employees. This performance
bonus will be given to those who perform better than other.

Training :

Dr. Reddy’s has provided employees with the many training programs to

improve the knowledge apart from the work.

The out bound training is a program educating the participants on

different aspects of working effectively in a team, how perceptions/paradigms

affect their communication & behaviour, how to deal with various situations

and how creativity could help in solving problems. This type of training

program is also one type of reward to the employees to acquire knowledge.

The ‘Behaviour Training Exercise’ for its employees. Popularly known

as “Express yourself clearly’ program, it identifies/extracts training needs from

the perfect IDPs. This training tells the real-life situations & some case studies

other training programs like “A mountain of learning” it tells about the value of

team -work & discipline.

55
Job Rotation:

This job rotation is one type of reward to get the job knowledge and gains

experience from his supervisor or trainer in each of the job assignment.

Through this the employees may understand the problem of each every job.

This is also one type of training.

Work Shop:

The workshops will be conducted by the company which were extremely

practical and interactive, have drawn much appreciation from the trainees. Dr.

Reddys planned more workshops on ‘Lateral Thinking’, ‘Team Dynamics’

‘Personnel Development’ ‘Leadership’, Communication Skills’, and ‘Problem

Solving, Decision making and Time Management’. These workshops are very

useful for employees to known how the performance could achieve.

56
Non-Monetary Rewards :

Lunch & Dinner:

Provide the Lunch & Dinner when celebrations & Award functions

are held.

Celebrations:

Celebrations are held for the purpose of fan, friendship & togetherness.

Dr. Reddys celebrates the important days like women days, may day,

independent days and new year celebrations.

Celebrations are a forum for recognizing the “Spirit of Excellence” in the

company. The ‘Spirit of Excellence” Celebrations is a big event of Dr. Reddys.

It is a two days program. On first day there will be a carnival time. The

carnival includes the variety of fun games, stilt walkers, tattoo artists, pottery

stalls, bangle stalls, fun rides for children. Many dance programs and musical

programs. The second day is celebrated through distribution of spirit of

excellence award to the excellence performance. Also conduct the quality

celebrations programs, to spread good manufacturing practices awareness

among the employees and resolve non-compliance issues. And also conducted

the safety celebrations to know the importance of safety in the work place.

57
Awards :

The Dr. Reddy Laboratories provide these to recognize the excellence

performance. The awards can be motivated the employees to perform better.

Spirit of excellence awards :

To recognize excellence performance and efforts towards organization

building the company will distributes the CM excellence awards, team awards

and certificates for appreciation (Special Recognition Award) on the occasion of

‘Spirit of Excellence’ celebrations.

The team awards givens to

• Best unit.

• Best Management work place.

• Best Sales & Marketing team.

• Best Innovation Team.

• Best team contribution to Society/Environment.

• Best team Initiative.

• Best Service Excellence.

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Certificate of Appreciation :

The certificate of Appreciation will be given to recognize persons. It

includes family in presentations when possible:This extends the recognition

and resulting “good feeling” to the entire family. Some programs conducted by

the Dr. Reddys will invite the employees as well as their families. The ‘Spirit

of excellence award celebration’ invite the employees as well as their families,

and also provide the dinners.

Elite :

Elite is a Dr. Reddys special program Dr. Reddys honoured its top 52

professional their targets for 3 years in a row and helping in building the

companies brands in the field.

The Elite as they are called – were invited to some place with their

families and entertained lavishly and at a gala dinner held in the everything at

celebrity they were presented with special plaques. There were prices for

employees and children’s as well.

Small Trinkets : Small trinkets will be given to their employees like t-shirts,

pens, ties etc.

Complements: Complements will be comes from the superior, when ones

performance is great. This is also one form of non-monetary reward.

59
Achievements & Awards Received by Dr. Reddy’s

The efforts of Dr. Reddy’s have been recognized in various. Some of the

major awards received by Dr. Reddy’s are in the area of packaging, best unit,

innovation etc.

When the company bagged prestigious awards for their products. The

employees are motivated to work in the esteemed organization to improve their

performance towards success of the organization.

Some of the important awards received by Dr. Reddy’s in 2004 -2005:

 AT the 4th Express Pharma pulse, awards function organization Mumbai

on may 28, 2004 Dr. Reddy’s was voted the “Best Bulk Drug company”

& Best Pharma company for Excellence in Research” by Express Pharma

pulse”, India’s leading pharmaceutical weekly.

 Dr. Reddy’s Brazil has bagged prestigious “convite para o premio” – Top

of business award for the year 2004 from montreal events & globo.com.

 April 6, 2005 the Chemtech Foundation honoured Dr. Anji Reddy,

chairman of Dr.Reddy’s lab bagged prestigious “Hall of fame’ award at

its annual Chemtech – pharmabio award for 2005.

 Dr. Reddy’s has bagged 10 prestigious ‘Indian star 2004’ national awards

this year for excellence in the package.

60
 Dr. Reddys won award from the ‘Public Relation society of India” on

Feb’14th 2004 at the 7th Andhra Pradesh public relations conference.

 Elixur – The House Magazine of Dr. Reddy’s Laboratories was awarded

a trophy and an appreciation certification by the public relations society

of India in the 6th ‘All India Awards’ as a part of the 7th Andhra Pradesh

Public Relations Conference conducted on February 14th, 2004.

 March 14th, 2005 Dr. Reddy’s has been rated among the 13 best managed

companies in India.

61
 DATA ANALYSIS AND INTERPRETATION

1. The company providing you any rewards and recognitions?

Response % of Respondents
Yes 70%
No 30%
Total 100%

From the above analysis the employees are providing rewards

& recognition by Yes 70%, No 30%.

62
2. Type of Rewards and Recognition are provided to you

Response % of
Respondents
Monetary 60%
Non Monetary 40%
Total 100%

From the above analysis the employees are provided rewards &

Recognition are monitory 60% and non-monitory 40%.

63
3. The Rewards and Recognition provided to you by the organization?

Response % of
Respondents
Yes 65%
No 35%
Total 100%

From the above analysis the rewards & recognition by organization to

employees is Yes 65%, No. 35%.

64
4. Rewards and Recognition being introduced in the Organisation?

Response % of
Respondents
Superior 50%
Co-worker 30%
Websites 20%
Total 100%

From the above analysis the new rewards and recognition introduced in

organization by superior 50% workers 30%.

65
5. The Opinion on rewards and Recognition provided by your

Organization?

Response % of
Respondents
Excellent 40%
Good 30%
Average 20%
Satisfaction 10%
Total 100%

From the above analysis the rewards and recognition are provided by

organization is excellent 40%, good 30%.

66
6. Have you get any Rewards and Recognition for your performance in

your organization?

Response % of
Respondents
Yes 70%
No 30%
Total 100%

From the above analysis the rewards and recognition for performance in

organization is Yes 70%, No 30%.

67
7. The rewards and recognition do you prefer more?

Response % of
Respondents
Monetary 60%
Non Monetary 40%
Total 100%

From the above analysis the rewards and recognition prefer is

monitory 70% and non-monitory 30%

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8. The Motivation level of you through these Rewards and Recognition

provided by your Organization?

Response % of
Respondents
Yes 80%
No 20%
Total 100%

From the above analysis the motivational aspects provided by

organisation is Yes. 80%, No. 20%.

69
9. The satisfaction level of you through these Rewards and Recognition

provided by you Organization?

Response % of
Respondents
Very Good 50%
Good 30%
Bad 20%
Total 100%

Above analysis the satisfaction level through rewards and recognition

is very good 50%, Good 30%.

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10. The success of your organization largely depends on the Rewards

and Recognition, system forward by your company.

Response % of
Respondents
Yes 65%
No 35%
Total 100%

From the above analysis the success of organization is depends on

rewards & recognition by Yes 65%, NO. 35%.

71
11. The different monetary rewards provided to you?

Response % of
Respondents
Profits 60%
Bonus 40%
Total 100%

From the above analysis the organization is provided by monetary is

profits 60% bonus 40%.

72
12. The different non monetary rewards provided to you?

Response % of
Respondents
Gifts 60%
Hikes 20%
Perks 20%
Total 100%

From the above analysis the organization is providing non-monetary

gifts 60% hikes 20%.

73
 CONCLUSION

1. Finally it is concluded that Rewards and Recognition of the organization it

effectively on employees.

2. Rewards and Recognition programme is used to develop the employee

performance and skills.

3. This organization is providing more festinates to employees.

4. The organization is providing new type of techniques in the organization.

5. The updated programme, and Rewards provided by the organization to

employees in all levels of areas.

6. The organization is providing Rewards on performance of employees.

7. The company is providing more facilities to the monetary level.

8. The company is providing more types of Motivational aspects to the

employees.

9. The company is giving more priority to satisfy their employees.

10. The companies is successful in providing Rewards and Recognition to the

employees.

11.It is providing all New type of Rewards to their employees.

12.It is providing Rewards and Recognition to employees on their effectiveness

to their work.

74
 SUGGESTIONS

1. There should be a permanent display about the rewards and recognition to

make clear awareness among the employees about the different rewards
provided in their organization.

2. Most of the rewards and recognition’s provided to the managers &

executives only. The companies should also provide to the employees.

3. The management should conduct the survey to collect the opinions of

employees regarding the rewards and recognition to know their satisfaction
level. So, as to improve the effective reward system.

4. The workers representatives should be involved in management decision

making process regarding the rewards and recognition.

5. The management should update its rewards systems in order to motivate the
employees from time to time.

6. The management is encouraging the employees for their outstanding

performance and at the same time it should have perfect counseling for the
employees who are about to reach their target.

7. The rewards and recognitions provided by the organization should be

satisfaction as the success of the organization largely depends.

8. The training and relation should be improved and trade union should actively
participate in where ever the workers are brutally suppressed.

9. Reward revision should be facilitated as per needs/requirements. Timely

rewards revisions reduce 100% problems.

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 QUESTIONNAIRE

Name of the Company:

Type of Business: Manufacturing Services
Location:
Designation:
Department:
Number of Employees:
Various other locations:
Number of years in business:

1. What kind of Reward policy is implemented in your organization?

a. Formal
b. Informal

2. . Is the reward scheme for every financial year budgeted in your

company?

Yes No

3. If yes, what percentage of revenue is earmarked for the reward in the

financial year?

4. Is the Reward system in your organization

a) Monetary
b) Non monetary
c) Both

5. What are the various Non monetary rewards practiced in your

organization?

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6. Is the reward system practiced in the organization properly
communicated to all the employees in the organization?

Yes No

If yes, How?

7. How often are the employees rewarded?

a) Monthly
b) Quarterly
c) Half yearly
d) Yearly
e) Occasionally based on extra ordinary accomplishments.

8. What are the behaviours that you are trying to encourage in your
employees?

9. Are all the employees eligible for the Reward as per your company
policy?

Yes No

10. If No, which level of employees are eligible?

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11.The criteria considered for rewarding the employees:

12.In your organization employees are considered for Reward and

Recognition mostly for

a) Innovative and Creative Ideas

b) Increased productivity/results/outcome
c) Customer Satisfaction
d) All of the above
e) Others

13.How is an employee selected for a reward? Is it through

a) Group vote
b) Decision from top officials
c) Decision from a single manager
d) None of the Above

14.How is the company benefited from the rewards and recognition?

a) Improved performance
b) Reduced absenteeism
c) Others

15.How old is the current Reward Policy?

16.How frequently do you bring changes in the Reward system practiced in

the organization?

a) For every 2-3 years

b) For every one year
c) For every six months
d) None of the above

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17.Are the employee suggestions considered while reviewing the Reward
program?

Yes No

18.How do you treat Non-Performers in your organizations?

a) Training to develop their skills

b) Any counseling been done
c) Any other measures

19.If there is no improvement in the Employee’s performance would you

a) Review job of the employee

b) Transfer of Department
c) Demotion
d) Pay/Salary Cut
e) Termination

20.What are the various short comings in your company’s Reward &
Recognition Scheme?

21.What are the measures taken to overcome or correct the same?

22. Is your company providing you any Rewards and Recognition’s?

a) Yes b) No

23. Which type of Rewards and Recognition are provided to you ?

a) Monetary b) Non monetary c) Both

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24. Are you aware of all the Rewards and Recognition provided to you by the

organization ?

a) Yes b) No c) Partially.

25. How did you come to know about any new Rewards and Recognition

being introduced in the organization?

a) Through superior b) Co-workers

c) Through websites d) when necessary comes

26. What is your opinion on Rewards and Recognition provided by your

organization?

a) Excellent b) Good c) Average d) Satisfaction

27.Did you get any Rewards and Recognition for your performance in your

organization?

a) Yes b) No

If yes what are they?

28.Which type of Rewards and Recognition do you prefer more.

a) Monetary b) Non monetary c) both

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29.What is the motivation level of you through these Rewards and

Recognition provided by your organization?

a) 0-25% b) 25%-50% c) 50%-75% d) 75%-

100%

30.What is the satisfaction level of you through these Rewards and

Recognition provided by your organization?

a) 0-25% b) 25%-50% c) 50%-75% d) 75%-

100%

31. Do you accept that the success of your organization largely depends on

the Rewards and Recognition system followed by your company.

a) Yes b) No c) Partially.

32.What are the different monetary rewards provided to you ?

a) Profits b) Bonus

33.What are the different non monetary rewards provided to you ?

a) Gifts b) Hikes c) Perks

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 BIBLIOGRAPHY

Books:
 Human Resource Management - Subba Rao

Websites:
* Company Profile - www.drreddys.com

* Rewards & Recognition - www.google.com

- The House Magazine of

Dr. Reddy’s Laboratory

 www.pharma.org

 www.pharmaceutical_industry.info

 www.pharmaceutical_drug_manufactures.com.

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