THE EFFECT OF MANAGEMENT PRACTICE ON OPERATIONAL PERFORMANCE IN THE CASE OF CADILA PHARMACEUTICALS (ETHIOPIA) PLC

Abstract

The purpose of this study is to investigate the influence of management practice on CadilaPharmaceuticals operational Performance . It investigates the effect of management practice elements in Cadila pharmaceuticals on its operational performance components. The study surveyed the employees and managers working at Cadila pharmaceuticals plc.Practical datawere collected from 186employees and 5 managers by means of a questionnaire and interview respectively.And also this study conducted using a probability random sampling using lottery method by dividing into strata based on departments, so some of the population involved in the study. Statistical techniques such as descriptive and inferential statistics, correlation, and multiple regressions were employed to find out the extent of management practice and operational performance in addition the relationship between management practice and operational performance also the influence of management practice on operational performance.The results of the study indicated a positive significant relationship between management practice variables (shop floor operation, performance monitoring, target setting and incentive setting) and operational performance variables (compliance with regulation, waste reduction and productivity). The results also indicated that the employees in Cadila pharmaceuticals plc agree that shop floor operations, performance setting, Target setting and incentive setting are very important for better operational performance (compliance with regulation, waste reduction and productivity). of the company. The resultsalso showed that there is a strong relationshipbetween managementpractice and operational performance. Results indicated that the each components of management practice(shop floor operation, performance monitoring, target setting and incentive setting)was having the highest effect on operational performance, Finally, the study recommended to improve the four components of management practices(shop floor operation, performance monitoring, target setting and incentive setting) because they are strongly interrelated and have influence on the productivity, waste reduction and compliance with regulation of the company.