TPL Case

Established in 1924, Texaco Pharmaceuticals Limited (TPL) is a global research-focused healthcare and
pharmaceuticals company providing prescription medicines and vaccines. The company is the market leader in
most of the therapeutic categories in which it operates. TPL also offers a range of vaccines for the prevention of
hepatitis A and hepatitis B. TPL has two manufacturing facilities in India, at Nasik and Thane. The Plant at Nasik
was set up in the year 1983. The state of art plant at Nasik makes formulations.

The senior leadership team seeks performance improvement of the plant particularly in quality standards. In
recent times, the plant has received adverse internal audit report on account of violations of the quality
specifications and, more alarmingly, dispatched goods have, on some occasions, been returned with customer
complaints. A key challenge impacting employee performance is the effectiveness of the Front Line Managers to
manage employee performance. A summer intern, who was recently engaged on a two month project, has given a
report, highlighting the following:

1. The organization had a certain approach to working that has not kept pace with the changing times. The
regulatory requirements are becoming stringent but the organization is too busy trying to deliver to make
any fundamental changes.
2. Capacity expansion - Due to pressures of more delivery, operations have increased multifold. However,
facilities, manpower numbers and capabilities and equipment have not kept pace with these changes.
3. Drastic reduction in manpower (both operatives and supervisor) while simultaneously demanding more
output. This has happened during a two year period between 2008-2010. Supervisor's workload have
resultantly increased manifold.
4. Attrition of experienced managerial staff - Continuous movement of people out of hate organization has
led to a lack of continuity among people.
5. New Senior Leadership Team - credentials of the new team are still viewed with suspicion by the HOD's
and other team members. There is also an absence of visibility or authority of leadership. There is no
vision or energy in the organization to unite people.
6. Organizational culture - is viewed as too lenient and numbers oriented but lacking a quality focus. Quality
becomes a concern only in cases of failures or audits otherwise it is kept on a backburner by people across
all levels.
7. Unclear accountability and responsibility - People are unsure about their powers. Supervisors are not sure
if they can take independent actions or no.
8. Role of supervisor - there is lack of role clarity and assertiveness. Supervisors are reluctant to confront
non-performers and table important issues for resolution.
9. Exercise of authority - Supervisors are afraid to exercise their authority. There is a fear of being singled
out or victimized if they take any action and/ or flag issues. There is an unwillingness to take action and
the approach is to let things be. There is also a fear that if they report deviations, they will be held
accountable for them. What follows is a scapegoating exercise rather than a root cause analysis exercise.
Deviations are not looked at as opportunities for improvement. People get into defensive behaviors.
10. SOP's - There appear to be multiple concerns related to SOP's - people may not know SOP's, they are too
complex and cannot be followed in practice, they take too much of time and therefore managers feel
justified in bypassing them etc. Efforts need to be made to increase awareness regarding the what and
why aspects of SOP's
11. Acceptance of authority - People who moved up from the ranks are not being accepted in the supervisor's
position by the lower ranks.
12. Transparency - should become more transparent in terms of the activities that happen, if they notice
something wrong, they should inform instead of withholding information.
13. Handling discipline issues - There is a feeling of leniency and absence of fear if people do not follow SOP's
or organizational norms. Supervisors do not feel empowered to take action against people.
14. Career progression - while some people are frustrated because of lack to opportunity to move up, others
do not want to move up and want to remain where they are.