Master of Business Administration Executive

Faculty / School

Faculty of Business Administration (FBA)

Year of Award


Project Type

MBA Executive Research Project

Access Type

Restricted Access

Executive Summary

Study carried out to unveil the link of line manager financial knowledge to financial performance of the pharmaceutical companies. Line Managers belief that the financial performance of Pharmaceutical companies is good although they do not train on financial tools and do not use financial tool or KPIs in departments. Line manager financial knowledge plays an important role for the financial performance of the pharmaceutical companies because there are involved in routine decision for non-management and management staff overtime, OPEX budget management, play important role for justification preparation of CAPX items and daily planning and organizing of the materials and human resources. The research methodology based on Questionnaires that finalized with experts. Different questions prepared comprises of four different areas like Involvement in OPEX and CAPEX budget, Knowledge, Financial Key Performance indicators and financial performance of department. The Questionnaires send to local and multinational companies' line manager for responses located in Karachi. The study reveal that line manager do not use financial KPls in department hence no track of financial performance of department although mostly line manager think their department finance performance satisfactory but unable to calculate finance variance related to overtime, expanses etc. about 90% of the population highlights the need for finance training. Although all companies financial performance, claims satisfactory by line managers but due to lack of knowledge and understanding of financial parameters by line managers, they do not reveal the impact of departmental expanse on company financial performance. The companies also did not have plan for development of financial capabilities of lines managers as it found that only 35% company do financial training of the line managers and 65% do not have interest in training. The organizations need to look into this area for study or deep dive to understand the impact of lack of financial knowledge of line Managers on overall company financial performance. The multinational company have plan for financial training and local companies do not have any plan for training. As compare to local companies the multinational companies although do not have formal plan in place for training but understand the need for training of lines manager and do training as required but for local companies this area is still need consideration. Not all organizations use managerial financial KPIs at departmental level and there is no communication plan exists for this. Both local and multinational companies need to consider the need for use of financial KPIs at departmental level. This help to plug the holes at departmental level.



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