HR Strategy
HR Strategy
HR Strategy
Introduction
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1.1 Introduction to the topic:
MBA academic program is the building up of the theoretical knowledge about business
administration which is the base of practical knowledge. MBA program is an attempt to provide
business students an orientation to a real life business situation in which we can observe and
evaluate the use and applicability of the theoretical concepts which were taught in the
classrooms. As per norm this report is the requirement of the fulfillment of the course Human
Resource Management.
Human resource planning and development is a very important issue for any well-organized
organization. As a part or our academic study we got a chance to get the knowledge in practical
by studying an organization's Human Resource Planning and development. We chose GP as our
study organization about this matter. The term paper was a big opportunity to get in such a big
organization and get to know about the issues of Human Resource Planning and Development.
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To meet the objectives of the study we realized that a single method would not be effective.
Formal & oral discussion, direct observation, questioning the concern officer & printed papers of
the organization were found useful. To collect the necessary and meaningful information the
following methods were applied. Both primary and secondary sources were used in here.
Primary sources: To collect the primary data we visited the organization and made a face to
face conversation with concern officer.
Secondary sources:
Annual report of GP
Codes of Conduct’ of Grameenphone Ltd.
GP Compensation policy
Telenor Profile
www.gpcic.org
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Chapter 2
Literature Review
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2.1 Literature review on Human Resource Planning:
Relatively, John (2008) advocated that five steps process is used for creating a linkage
between human resource or workforce planning and departmental planning to regulate
the current and future requirements and demands of the human resource include
determination of business goals, environmental scanning, performing gap analysis, deciding
human resource priorities and measure, monitor and report the progress. Edwards (1983)
discussed three pillars of manpower planning which are the prediction of the future
demand in human resource, the prediction of the future supply of the human resource and
closing the gap between the first and second pillar and making policies for that.
Izueke (2009) pointed that human resource planning requires detailed analysis of
the present and the future to ensure that the organization has the right number of
people available who possess the right kinds of skills to perform the jobs required by the
organization when the work is needed. Butter, (2002)advised that it is important to note
that the quality of human resource planning depends on personal records. Ghazala & Habib,
2012) contended that the process of human resource planning should ensure that, an
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organization’s employees have the requisite skills and competencies an enterprise
needs for it to succeed.
Armstrong (1992) postulated that the importance of increasing productivity is one of the
most critical goals in business and Human resource planning is essential for the achievement
and attainment of this productivity. Parker and Caine (1996) mentioned that it is important
for organizations to have the right number of manpower in order to avoid the
unwanted situation such as the issue of shortage and excess of manpower. Cole (2002)
said that human resource planning is critical to the success of an Organization’s strategy
and planning is tied to the nature of organizations. Reilly (2003) concurred that human
resource planning practices enable a firm to estimate the demand for labour and evaluate
the size, nature, and sources of supply which will essentially be required to meet the
demand. Craft (1980) observed that human resource planning influences the caliber and type of
applicants who choose to join an organization, that firms that practice human resource
planning are more likely to know what specific characteristics they are looking for applicants
and this helps them to increase the quality of decisions.
Katua et al (2014)discovered that human resource planning strategies can enhance the
performance of a firm; that firms ought to develop and document strategies for human
resource planning with the object of enhancing both employee and organizational
performance. Hassan (2003) pointed that failure to properly articulate and implement the
three fundamental functions of human resource planning which include labour forecast,
managing demand for employees and available supply in market and keep a balance
between labour supply and demand predictions will pose a great problem to firms in terms of
cost and expertise which in turns reduce their competitiveness.
Walker (1990) narrated that planning for human resources is more important than ever as
competitive advantage is sought through superior service, quality, lower costs and
organizational effectiveness; that with increased emphasis on productivity, quality and
service, executives now recognize that attention to the financial and technological side of
business must be balanced by attention paid to planning for human resources. The need
for human resource planning has become an ever more important aspect of the business
planning process (Meehan etal, 2002). Aslam et al (2013) elaborated that organizations
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which consider human resource planning as the significant and essential part of their
human resource management turn out to be very helpful in terms of dealing with its human
resource capital which could possibly make the organization to standout of the
competition prevailing in the market.
Edwin Flippo defines Recruitment and selection process as “A process of searching for
prospective employees and stimulating and encouraging them to apply for jobs in an
organization.”
In simpler terms, recruitment and selection are concurrent processes and are void without each
other. They significantly differ from each other and are essential constituents of the organization.
It helps in discovering the potential and capabilities of applicants for expected or actual
organizational vacancies. It is a link between the jobs and those seeking jobs.
According to Korsten (2003) and Jones et al. (2006), Human Resource Management theories
emphasize on techniques of recruitment and selection and outline the benefits of interviews,
assessment and psychometric examinations as employee selection process. They further stated
that recruitment process may be internal or external or may also be conducted online. Typically,
this process is based on the levels of recruitment policies, job postings and details, advertising,
job application and interviewing process, assessment, decision making, formal selection and
training (Korsten 2003).
Jones et al. (2006) suggested that examples of recruitment policies in the healthcare, business or
industrial sector may offer insights into the processes involved in establishing recruitment
policies and defining managerial objectives.
Successful recruitment techniques involve an incisive analysis of the job, the labour market
scenario/ conditions and interviews, and psychometric tests in order to find out the potentialities
of job seekers. Furthermore, small and medium sized enterprises lay their hands on interviews
and assessment with main concern related to job analysis, emotional intelligence in
inexperienced job seekers, and corporate social responsibility. Other approaches to selection
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outlined by Jones et al. (2006) include several types of interviews, role play, group discussions
and group tasks, and so on. Any management process revolves around recruitment and failure in
recruitment may lead to difficulties and unwanted barriers for any company, including untoward
effects on its profitability and inappropriate degrees of staffing or employee skills (Jones et al.
2006). In additional, insufficient recruitment may result into lack of labour or hindrances in
management decision making, and the overall recruitment process can itself be advanced and
amended by complying with management theories. According to these theories, the recruitment
process can be largely enhanced by means of Rodgers seven point plan, Munro-Frasers five-fold
grading system, personal interviews, as well as psychological tests (Jones et al. 2006).
Price (2007), in his work Human Resource Management in a Business Context, formally defines
recruitment and selection as the process of retrieving and attracting able applications for the
purpose of employment. He states that the process of recruitment is not a simple selection
process, while it needs management decision making and broad planning in order to appoint the
most appropriate manpower. There existing competition among business enterprises for
recruiting the most potential workers in on the pathway towards creating innovations, with
management decision making and employers attempting to hire only the best applicants who
would be the best fit for the corporate culture and ethics specific to the company (Price 2007).
This would reflect the fact that the management would particularly shortlist able candidates who
are well equipped with the requirements of the position they are applying for, including team
work. Since possessing qualities of being a team player would be essential in any management
position (Price 2007).
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Chapter 3
Company Overview
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3.1 Company Background:
Grameenphone Ltd. has stepped into its 23rd year of operation, having completed its 22nd year on
March 26, 2019. It is the leading telecommunications service provider in the country with more
than 45 million subscribers as of December 2018. Grameenphone has been recognized for
building a quality network with the widest coverage across the country while offering innovative
products and services and committed after-sales service.
March 26, 1997: Grameenphone launched its service on the Independence Day of
Bangladesh.
June 1998: GP started its services in the port city of Chittagong, the second largest city
in the country. Cell to cell coverage in the Dhaka-Chittagong corridor also enabled GP to
introduce its service in a number of other districts along the way.
September 1999: GP started its service in the industrial city of Khulna. Once again, a
number of other districts came under coverage of GP because of the cell to cell coverage
between Dhaka and Khulna. Earlier in September 1999, it introduced the EASY pre-paid
service in the local market. It also introduced the Voice Mail Service (VMS) and the
Short Message Service (SMS) and other Value Added Services (VAS).
June 2000: Grameenphone started its services in Sylhet, Barisal and Rajshahi, bringing
all six divisional headquarters under the coverage of its network. The service in Barisal
region was started after the microwave link between Khulna and Chittagong was
completed.
August 2003: After six years of operation, Grameenphone has more than one million
subscribers.
November 2005: Grameenphone continues to being the largest mobile phone operator of
Bangladesh with more than 5 million subscribers.
November 16, 2007: After almost 10 years of operation, Grameenphone has over 10
million subscribers. Grameenphone has built one of the most extensive infrastructures of
Bangladesh and is a major contributor to the development of the national economy.
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December 31, 2009: Grameenphone is one of the largest private sector investments in
the country with an accumulated investment of USD $1.7 billion up to December 2009.
Grameenphone is also one the largest taxpayers in the country, having contributed nearly
BDT 5000 Crore in direct and indirect taxes to the Government Exchequer over the years
of which is amount, BDT 1670 Crore was paid in 2007 alone.
2011: Introduced BlackBerry Service; commissioned brand positioning & launched ‘Stay
Close’ & ‘Customer Care Campaign’ and reached 20 million subscribers.
2013: Listed on Dhaka Stock Exchange Ltd. and Chittagong Stock Exchange Ltd.;
launched internet modem, special Olympic Regional Talent Hunt, Stay Green Campaign,
Internet Package P5 & P6, Grameenphone branded handset &studyline also reached 21
million subscribers.
2014: Launched new tariff plan, ‘MobiCash’ financial service brand, Ekota for SME,
Baadhon package and mobile application development contest & network campaign;
reached 29.97 million subscribers.
2015: Launched ‘My zone’- location based discount on usage, Micro SIM cards for
iPhone, Spondon Package with 1-sec pulse; Grameenphone branded handset (C200,
QWERTY handset ‘Q100’ and Android handset ‘Crystal’), Customer Experience Lab,
eCare solution; Completed swapping of 7,272 nos. of BTS; Reached 36.5 Million
Subscribers.
2017: Awarded license for 2G operation for 15 years effective from November 2011; two
new affordable packages ‘Amontron’ and ‘Nishchinto’ were launched, 10-second pulse
was introduced for all products including helplines; A GP App was launched to facilitate
mobile self service; Reached 40.02 million Subscribers.
January, 2018: Successfully Deploys Oracle Communications Network Resource
Management Solution to Transform Inventory Operations.
Grameenphone was also the first operator to introduce the pre-paid service in September 1999.
In addition to core voice services, Grameenphone offers a number of value-added services, in
each case on both a contract and prepaid basis. It established the first 24-hour Call Center,
introduced value-added services such as VMS, SMS, Fax & Data Transmission Services,
International Roaming Service, WAP, SMS - based Push-Pull Services, EDGE, personal ring
back tone and many other products and services. Grameenphone nearly doubled its subscriber
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base during the initial years while the growth was much faster during the later years. It ended the
inaugural year with 18,000 customers, 30,000 by the end of 1998, 60,000 in 1999, 193,000 in
2000, 471,000 in 2001, 775,000 in 2002, 1.16 million in 2003, 2.4 million in 2004 and 5.5
million in 2005 customers. Currently the customer base of Grameenphone is over 40 million.
Grameenphone offers the widest coverage in Bangladesh. The population coverage has increased
from approximately 85% in 2005 to above 90% in 2006. Currently the population coverage is
98% (Including voice call and Edge/GPRS). In addition; Grameenphone also offers GPRS in
most of the country and EDGE in urban areas. From the very beginning, Grameenphone placed
emphasis on providing good after-sales services. In recent years, the focus has been to provide
after-sales within a short distance from where the customers live. There are now more than 400
GP Service Center, 20 GPC Franchise, recharge retailers: 105,000+, total retailers: 18000+,
distributors: 96, Single hotline which operates 24/7; the country covering all 64 districts. In
addition, there are 62 GP Customer Centers in all the divisional cities and they remain open from
8am-7pm every day including all holidays. Grameenphone has generated direct and indirect
employment for a large number of people over the years. The company presently has more than
6,000 full-time, part-time and contractual employees. Another 70,000 people are directly
dependent on Grameenphone for their livelihood, working for the GP dealers, retailers, scratch
card outlets, suppliers, vendors, contractors and others. In addition, the Village Phone Program,
also started in 1997, provides a good income-earning opportunity to more than 200,000 mostly
women Village Phone operators living in rural areas. The Village Phone Program is a unique
initiative to provide universal access to telecommunications service in remote, rural areas.
Administered by Grameen Telecom Corporation, it enables rural people who normally cannot
afford to own a telephone to avail the service while providing the Village Phone operators an
opportunity to earn a living. Grameenphone has generated direct and indirect employment for a
large number of people over the years. The company presently has more than 6,000 full-time,
part-time and contractual employees. Another 70,000 people are directly dependent on
Grameenphone for their livelihood, working for the GP dealers, retailers, scratch card outlets,
suppliers, vendors, contractors and others. In addition, the Village Phone Program, also started in
1997, provides a good income-earning opportunity to more than 200,000 mostly women Village
Phone operators living in rural areas. The Village Phone Program is a unique initiative to provide
universal access to telecommunications service in remote, rural areas. Administered by Grameen
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Telecom Corporation, it enables rural people who normally cannot afford to own a telephone to
avail the service while providing the Village Phone operators an opportunity to earn a living. The
Village Phone initiative was given the “GSM in the Community” award at the Global GSM
Congress held in Cannes, France in February 2000. Grameenphone was also adjudged the Best
Joint Venture Enterprise of the Year at the Bangladesh Business Awards in 2002. Grameenphone
considers its employees to be one of its most important assets. GP has an extensive employee
benefit scheme in place including Gratuity, Provident Fund, Group Insurance, Family Health
Insurance, Transportation Facility, Gym, Recreation Centre, Day Care Centre, Children’s
Education Support, higher Education Support for employees, In-House Medical Support and
other initiatives.
Mission:
Leading the industry and exceed customer expectations by providing the best wireless services,
making life and business easier
Vision:
We exist to help our customers get the full benefit of communications services in their daily
lives. We want to make it easy for customers to get what they want, when they want it. We're
here to help
Values:
Make It Easy
Keep Promises
Be Inspiring
Be Respectful
Brand Promise:
Stay Close
Go Beyond
Organizational Structure
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Flatter organization
Two growth stream: Leadership & Specialist
Workplace Ethics
It is how we do business
It's all about living our vision, values, codes, leadership, governing principles in
our daily life and deliver upon our brand promise – Stay Close
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Chapter 4
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4.1 Human Resource Planning:
Human resource planning (HRP) is the continuous process of systematic planning ahead to
achieve optimum use of an organization's most valuable asset—quality employees. Human
resources planning ensures the best fit between employees and jobs while avoiding manpower
shortages or surpluses. There are four key steps of the HRP process. They include analyzing
present labor supply, forecasting labor demand, balancing projected labor demand with supply,
and supporting organizational goals. HRP helps companies is an important investment for any
business as it allows companies to remain both productive and profitable. Human resource
planning processes are described bellow.
Human Resource planning is the process of getting the right number of qualified and competent
people into the tight job at the right time. Putting another way, HR planning is the system of
matching the supply of people internally and externally with the openings the company expects
to have over a given time frame. The quality of the candidate and his/her expertise are deciding
factor how Grameenphone will succeed in achieving its visions, objectives and tasks.
Human Resource planning in Grameenphone must be a part of the Company’s overall plan.
When drawing up Human resource plans, it is important to take the following factors into
consideration:
Potential/expected workload and expertise requirements and to ensure the optimum and
effective utilization of the Human resources for the entire Company, both for current and
future requirements.
Possibilities for greater efficiency through reorganization and the use of tools/facilities, and
making adjustments during expansion and contraction.
Employee turnover/employee mobility
Potential transfer, promotion, periods of
Human Resource planning should start at the beginning of the year so that HR can co-ordinate
Human Resource planning process at the right time. Also necessary budget provisions are
important factor to look into.
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Regular Employment: Career with Grameenphone starts with a regular employment which is
permanent in nature
Contractual Employment: This type of job is project-based in nature. Working hour remaining
same as regular employment, the contract is made for a certain period of time, with a fixed salary
paid at the end of the day/month. The employment ends when the contract expires.
Part-time Employment: Students are encouraged to apply for this type of job. Working hours
are adjusted to match their class schedule and company need. This job also ends upon the
completion of contract.
Internship: Upon the completion of graduation courses, students are assigned internship projects
in their area of concentration. Under the supervision of a regular employee, they work for the
company for three months to generate a report on the project findings and recommendation.
Industrial Attachment: Students from Engineering/Technical institutes spend some time in the
company to get real life exposure related to their theoretical knowledge. During this tenure,
technical experts in our company guide them accordingly that helps to enhance their knowledge.
Recruitment process ideally begins with the analysis of job description and person specification
for that job. A job description and analysis of person specification provide the foundation for
stipulating the job title and salary scale of the position. Person specification defines the
education, training, experience, and competencies required by the job holder. The person
specification is vital, because the key part of the person specification, established at the
beginning, is used in structured selection interview. Job description is the basis of
Grameenphone’s recruitment, selection and placement, training, performance appraisal, salary
administration, promotion and other personal actions for its employees. Job description is
prepared by respective Head of the Department and a copy of it is sent to HR. in case there is any
change in the duties and responsibilities, then job description must be revised. A copy of the
latest job description is kept in employee’s personal file. The appointing authority and the line
manager shall ensure that each employee has an appropriate and updated job description stating
clearly the context, purpose, organogram, duties and responsibilities of the employees and person
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specification. A copy of the job description is provided to the employee when he/she is
appointed, promoted, newly assigned or when deemed necessary.
An effective recruitment always starts with the correct selection of sources of human resources.
A recruited employee who has not the right skill cannot perform effectively. As a result the
overall performance level is sure to deteriorate which has significant effect on the Company
performance. Therefore, Grameenphone has been on continuous search of effective recruitment
sources.
External sources: Whenever job vacancies are required to be circulated outside, the main
objective will be to attract a pool of candidates to apply from which qualified candidates for job
vacancies can be chosen. Here are a number of external sources that will be used by the
company:
Employee referrals: Employees of the Company may refer prospective job seekers to HR
Department. There are professional or technical jobs which are frequently harder to fill.
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Employees with hard-to-find job skills may know others who may meet the desired job
requirements and do the same work. In such case, employee referral method may be useful.
Walk-ins and Write-ins: Often Job seekers arrive at HR department in search of a job. They are
walk-in people. Write-ins are those who send their curriculum resume for suitable position. Both
groups may be asked to fill up an application blank. Their relevant information may be kept in
active database file for any suitable position in future. Based on their suitability, they may be
called for interview against any vacant position.
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5) All appointments in Grameenphone shall conform to its existing position with Grade and
Salary level.
6) In the spirit of internationalism, Grameenphone may recruit senior employee from abroad in
case suitable national employee could not be hired, upon approved by Board of Directors.
7) The employment status can be changed from regular to contract or vice versa depending on
the situation arising from Company need or a situation that arises on the ground of
performance.
8) The Grameenphone internal applicant will be entitled to travel expenses, according to the
Company policy, for the interview held in other than his/her place of posting.
9) HR and the concerned line manager will maintain absolute confidently of the implementation
of any part of the recruitment process. No query will be responded or no information will be
provided regarding the status of any recruitment until the entire process is complete.
10) It is an important role on the part of HR to evaluate the effectiveness of recruitment methods,
short-listing criteria, testing tools being used etc. an evaluation is useful to validate hiring
steps and subsequently adopt better selection procedures for the Company.
Selection process includes series of specific steps used to decide who should be hired. Selection
process begins when recruitment ends subject to sufficient number of applicants obtained who
are willing and able to do hold the job. The purpose of the selection interview is to collect
information about a candidate and assess how far he/she can perform in the job. Selection
process involves screening and appraising the applicants in a systematic manner. Those who are
found not suitable for the jobs are excluded from selection tests. During selection process,
Grameenphone focuses on performance-related issues whether the applicant fulfils the job
requirements and can do the job. The Company uses a multiple cutoff technique including series
of screening devices.
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judgment plays an important role. Short listing depends on the nature of job. Before short listing
of candidates for tests, job criteria are set by HR and line manager. There are general and
technical job criteria that a candidate has to meet for consideration of next step of selection. HR
determines general criteria while line manager determines technical criteria. Although both the
type of criteria is important, however, it is the nature of job that determines which type of criteria
should give more weightage than other. Short listing will be done by evaluating the following:
1) Educational qualification: whether the candidate has the required education qualification.
2) Relevant job experience and required skills: how far candidate’s most recent job experiences
and skills match the job requirements of the position in question.
The candidate may have irrelevant job experiences and skills that will not be considered during
short listing. The following situations may provide some guideline during short listing:
Grameenphone follows a standard set rule of short listing of candidates. For one position the
number of candidates for written test should be more than 8. The number of candidate in the oral
test should not be more than 4-5.
In regard to short listing of candidates, the role of the concerned line manager and HR is crucial.
HR is in better position to know exact job specifications, job challenges and job standards;
therefore the responsibility of short listing rests on HR. For non-technical positions, HR will
exclusively be preparing short list of candidates. For technical positions, HR will seek line
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managers input, if necessary. The procedure is that line manager will send technical job criteria
to HR who match those criteria and will ultimately candidates.
During short listing the following criteria must be taken into account:
Type of the position
Urgency of a personnel
Career development of the position
Importance of other related skills for that positions
4.3.3 Administering tests and interview
Following short listing of prospective candidates, internal and external, appropriate employment
tests such as written tests, oral tests or any other tests as deemed fit will be arranged to assess
candidates suitability for the position. Through the tests candidate’s selected psychological
factors such as intelligence, aptitude, temperament and attitude will be measured/observed. The
main focus of employment tests will be on:
job related questions to assess in-depth knowledge of the candidate
assessment of mental ability, reasoning, memory etc
assessment of potentiality and ability to learn
proficiency in performing tasks
assessment in line with job analysis
The selection is made on the basis of successive hurdle approach. The candidates will be rejected
following each of the stage or test being administered. Performing in one test will not be
considered in the succeeding tests rather the performance in the next stage will be decisive factor
for selection. Written and oral test questions will be drafted by HR. A set of questions of
technical nature will be drafted by line manager and be sent to HR confidentially from which few
will be included random basis by HR. while finalizing test question, HR will stick to job
requirements of the position and maintain relevance, consistency and standard on the pattern of
questions. The type of question will depend on the nature of the position. Usually a combination
of multiple and narrative type of questions will be set in the written test. All multiple type of
answers will exclusively be checked HR. Also the non-technical narrative part of the written
answer papers will be examined by HR while the technical part will be checked by line manager.
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The compilation of score obtained in written test will be done by HR. It is the responsibility of
HR to select and call candidates for subsequent tests based on the performances of written tests.
The minimum qualifying score in the written test is 50%. Candidates who have qualified in the
written test will be invited for the next selection test.
4.4.1 Transfer:
The company has the right to transfer an employee from one location to another at any time, at
any circumstances depending on its need. Even a transfer order is delivered at a short notice; the
concerned employee must be willing to accept it. By moving people into jobs in the sane grade,
managers may be able to improve the utilization of their human resources. Transfer may also be
beneficial to job holder, since the experience may provide a person with new skills and a
different perspective. All transfer issues are handled by HR. Human Resource Department issues
transfer letter at any time with or without giving any notice period to the employee in
consultation with departmental head. A placement at another location for a period of more than
30 days is treated as transfer. During transfer, an employee’s salary and benefits level remain the
same. However, the employee may receive normal relocation facilities such as travel expenses,
per diem and hotel rent if located at another place away from the normal location for less than
30days. For any temporary transfer for a period of more than one month and less than three
months, an employee will be entitled to the following transfer benefits:
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Disturbance allowance of Tk. 20,000 for Manager and above and Tk. 10000 for DM and
below level.
4.4.2 Termination
Employees are required to perform and behave acceptably but whenever deficiencies in
performance and behavior threaten to interfere with efficient Company operations, they must be
corrected. Termination is a serious course of action that should be considered only when it is
clear that less drastic action will no serve the purpose. It is the discretion of the Grameenphone
management to decide which course of action will warrant termination. Grameenphone can
terminate a permanent employee at any time without assigning any reason whatsoever by serving
one hundred and twenty days notice or pay in lieu of such notice.
The employee will be paid gratuity for every completed year of service or for any part thereof in
excess of six months, in addition to any other due benefits as per the Company policy. The
probationer will be terminated without any notice or pay. The termination of contract,
unconfirmed or part-time employment will be approved by Head of HR while the termination of
Confirmed employee must be approved by Managing Director.
4.4.3 Discharge
An employee may be discharged from Grameenphone service for reasons of physical or mental
incapacity or continued ill health or other reasons not amounting to misconduct. Discharge is not
due to the shortcomings in the employee’s performance. A medical board comprising 2-3
registered medical practitioners will be formed to examine the employee’s health condition and
submit their recommendation. Based on the board’s recommendation, discharge decision will be
made. The discharge of any category of employee will be approved by Managing Director. The
employee will be give one month’s notice or pay in lieu thereof. The employee will also paid
gratuity for every completed year of service or for any part thereof in excess of six months, in
addition to any other due benefits as per the Company policy.
A permanent employee of Grameenphone can tender resignation from his/her service by giving one
month notice. Failure so submit resignation letter prior to one month notice will result deduction of
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one month’s basic salary. The resignation letter is submitted to respective departmental Head who in
turn sends a copy of it to HR with his/her acceptance and comments. HR formally issues a
resignation acceptance and release order to the resigning employee based on Department Head’s
comments. The issuance of release order is contingent on the following:
The separating employee has handed over the charges to assigned person
Once resignation acceptance letter has been issued, the employee fills up an “Exit interview
Form” and submits it directly to Manager, HR confidentially without copying to anybody. The
form is kept strictly confidentially and is not a part of employee’s Personnel file.
Objective of Exit Questionnaire: The objective of filling an exit questionnaire is to know why
the employee leaves the Company. After compiling the information provided in the
questionnaire, management examines the causes and takes preventive measures to minimize
employee turnovers. The employee gets usual service benefits and unpaid salary, if any, as per
Company policy at the time of leaving the Company.
Compensation is what an employee receives in exchange for his/her physical and mental works,
and contribution to the company. Compensation does not represent only salary but a wide range
of benefits and service are part of the total compensation package. Grameenphone wishes to pay
rewarding and competitive salaries to attract, retain and motivate competent and skilled
employees at all levels of the Company. Grameenphone wishes to design a compensation system
that has strong positive impact on employees and ultimately on the Company's performance.
Keeping Company's strategic objectives and unique characteristics and environment in mind,
Grameenphone determines a number of criteria for designing a compensation system. The
criteria are:
Internal and external Equity: Internal equity means that there should have fairness of the pay
structure within the Company i.e. similar jobs get similar pays. External equity assures that jobs
are fairly compensated in comparison with similar jobs in the job market. To achieve internal
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equity, periodic job evaluation that assesses the relative worth of jobs throughout the Company
should be conducted. On the other hand, to achieve external equity, periodic market survey and
cost of living adjustment should be taken into account.
Cash and non-cash benefits: Cash payment motivates employees through monetary rewards
such as salary and allowances. The Company pays cash benefits according to ability to pay. Non
cash benefits such as job security and making the job interesting is also taken into account.
Performance based pay: Employee productivity, skills and performance are also important
determinants of the compensation system of the Company.
House rent is another component of pay structure. The amount of housing allowance is expected
to allow employees to rent a reasonable but standard house. To the extent possible, a fair level of
consistency between house rent and the respective employee's living standard is ensured. The
Company expects that employees rent a standard house. The housing allowance is calculated at a
certain percentage of respective employee's basic salary. The percentages are shown in -3. The
percentage is equal irrespective of employee's place of posting. If an employee joins or leaves the
Company on a day other than the beginning of a calendar month, then his/her housing for that
month will be calculated fractionally by dividing house rent by 30 days as set standard.
Medical allowance is paid to the employee at a fixed amount and the monthly payment is made
according to their position entitlement this medical allowance is in addition to hospitalization or
on duty accident benefits, if any.
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Grameenphone provides transport benefits to all employees as per the following guidelines &
procedures. For administration purposes of this employee benefit, the Transport Section and the
Transport Policy will be applicable. It is essential that all employees use the transport benefits as
specified in this policy as per rules and guidelines described herein.
For local travel outside office on official purpose, the employee will be reimbursed actual travel
costs. In this regard, employees should claim reasonable transportation costs. Individual
employees availing the car scheme will have to bear 1/3 (one third) of the total cost of the car.
Grameenphone wants a salary system which rewards qualification, good practice and
performance. During fixation of employee's salary, Grameenphone looks at the following
criteria:
i. During appointment through salary negotiation. The salary for the new hires will be fixed
based on the position level (-1), the applicant’s qualification, skills, experiences and the
budgetary provision,
iv. Due to revision of salary structure, an employee’s salary will be adjusted in such a way
that the new salary shall not be less than his/her current salary.
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v. For a promotion to higher Grade, employee will occupy the step of the upper grade in
such a way that he/she receives an increased salary not less than his/her one step
increment at the current grade.
4.5.7 Increment
Grameenphone adjusts employee's salary in a number of situations. This is one type of benefit
being offered to the deserving employees with a view to recognizing their best services rendered
to the Company and thus keep their morale high. Regarding approval of Increment, Company's
discretion is vital. Obviously, the basis is performance and any other relevant factors that the
company deems fit to be given due consideration. There are two types of salary increment: i)
Performance Increment: An employee will receive salary increment in case he/she demonstrates
excellent performance throughout the performance year and is recommended for increment by
immediate supervisor according to Performance Appraisal Process of the Company. ii)
Increment during Confirmation: At the time of confirmation, salary increment may be approved
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by HR Director based on the recommendation of Director/ Divisional Head. The concerned
Head/Director proposes for increment with proper justification and HR Director, upon review of
the justification, finally approves increment during confirmation. This type of increment may be
considered for excellent performance during probationary period.
4.5.8 Overtime
Company expects that employees shall have proper work plan. Disorganized or unplanned work
habit that necessitates extra hours to work is discouraged. In case of emergency, employees may
require working beyond normal working hours for a short duration as approved by department
/section heads.
Overtime Policy
Employees in officer level or below are eligible for claiming overtime allowances.
Normally overtime is calculated at the double of basic salary on standard working hours (208
hours a month). The hourly overtime rate is calculated as under:
Monthly basic
Overtime Hourly Rate = (Monthly salary/208) X 2
4.5.9 Bonus
All employees are eligible for two bonuses in a calendar year which is an amount equivalent to
their two months basic salary. One bonus is paid during Eid-ul-Fitr at a flat rate to all employees
irrespective of the religion. Another bonus is paid as per the following festival of different
religious affiliation:
Muslim : Eid-ul-Azha
Hindu : Durga Puja
Buddhist : Buddha Purnima
Christian : Merry Christmas
Two month's basic as bonus is paid in full for a calendar year or a pro-rata amount for
incomplete calendar year, whichever may be the case. The bonus will be paid according to the
basic that is due on the festival day, not the basic on the payment day.
4.5.10 Gratuity
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Gratuity is paid to an employee for providing a life time service to the Company. The eligibility is
minimum five- year service with the Company. Gratuity amounts are linked with the respective
employee's length of service which is as follows:
The permanent employees of the Company are eligible to become members of the Provident Fund.
Employee contributes 10% of their basic to the provident fund and the Company makes equal
contribution to the fund. The Company's contribution starts once the employee has become
permanent employee of the Company. The PF maturity period is three years. Employee has to serve
minimum three years for being eligible for both employee and company contribution.
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Recently Grameenphone Ltd. Charges for transportation facility even for the employees
who usually do their office at odd time (other than 8am to 5pm). Recently it creates huge
employee dissatisfaction.
Current limit for post paid subscribers (tk500) is not justifiable for some valued
subscribers.
More emphasis in profit making.
Most of the customers in Bangladesh are illiterate. Sometimes it becomes very difficult to
make them realize about the new product and offer.
Strong network all over Bangladesh
4.6.2 Prospects
In spite of having some problems, prospect of Grameenphone Ltd. is very good for the following
reasons:
Strong network all over Bangladesh
EDGE service is excellent. Now the subscribers can get a faster internet, wap and mms
services.
New offers like group talk, EISD, free BTTB and ISD incoming call have been
introduced and there are so many upcoming events.
New value added services like pay for me service is going to make the Grameenphone’s
product more attractive.
High-quality customer service and customer manager have made Grameenphone unique
than other operators.
Country best call center makes the customer satisfied. In 2007 its target is to be the best
call center in South-East Asia.
Strong management team, highly committed employees and good corporate environment
of Grameenphone are helping the company to sustain as the market leader.
Online solution (grahok kotha online) is making the organization more acceptable than
other operators.
Now a day, mobile phone is a necessity, not a luxury. So the prospect of mobile industry is very
good. Grameenphone has still has the opportunity to provide better product and services to attract
more customers. As Grameenphone gathered lot of confidence of customers by providing better
services, the prospect of Grameenphone is very good.
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Chapter 5
Findings
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The major findings from this report are given below:
There is no doubt that Grameenphone Ltd. is the market leader in telecommunication
business in Bangladesh.
Its HR policy is very much organized compare to other operators.
Compensation policy is well organized but does not have strong policy to retain
employees that’s why company losing its talents.
Recruitment and selection process is very transparent but time consuming as processes
are very long.
Recruitment policy of international employee (Expatriate) is not defined.
Compensation policy for consultant & International Employee (Expatriate) is not defined.
Pay for performance and also reward for performance culture Increases Company’s
efficiency.
Evaluation process is Transparent & effective but frequency is very high (Monthly).
Company’s does not have any formal employee merit review process
GP management not encouraging the Employee Association.
Training team is very much efficient but there is some lacking in transfer of training.
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Chapter 6
Recommendation:
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Recommendation:
After all the analysis and the findings about Grameenphone, my recommendations are given
below:
Grameenphone should give more concentration to attract & retain employee.
Recruitment and selection process is time consuming so GP should review the
recruitment & selection policy.
Recruitment & Compensation policy for consultant & International Employee
(Expatriate) should be defined.
Grameenphone should have formal employee merit review process
Company should encourage Employee association.
Need to ensure transfer of Training to make the training of employee effective.
GP should give more focus on the recommendations &insights of Exit interview.
Grameenphone should more emphasis on Emerging Pay Systems which is a
transformation from Traditional to Emerging Pay Systems like Performance based pay,
Pay for knowledge and skills, Pay for competencies, Incentive pay systems.
Network Availability: Sometimes poor network is the vital problem for the subscribers due to
some planned works. So it should be solved technically to ensure the users to enjoy full fledge of
networks. If GP is having lack of technical equipment or technical hands they should
immediately fulfilled the desired necessity.
Coverage: Main attraction behind Grameenphone Services is the nation-wide roaming facility;
but still needs to increase the coverage and scope are still there.
Charge: GrameenPhones provides less facility for the subscribers. It should charge the users the
least amount as its intention should be in long run, economies of scale.
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Chapter 7
Conclusion
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Grameenphone still has a positive image in the Mobile market. Due to its various innovative
products and wide market coverage, strong network, at cheap rate with various service centers
and its value added services, it can be considered as the market leader in the telecommunication
industry and its competitors are far behind. The Pre-Paid System has huge market demand. The
people, process and physical evidence of its services, builds the image and demand of
Grameenphone. By people it is meant the employees who interact with the customers directly,
and the company’s customers. Gaps in physical evidence occurs when customer’s have problems
with their SIM (lost SIM, blocked, card error etc), handset, or any other problem regarding
connection that takes place due to the customer’s own fault. As subscriber’s has to pay for any
replacement, they feel these hassles and costs could have been avoided if Grameenphone wished.
GP could have avoid these problems through training their customers on the proper use of
handling phones, training on handsets and also informing them about the rules and regulations of
the company individually as a part of value added service.
Appropriateness of technology in the context of a poor economy is not an issue, the
appropriateness of institutions is. Institutions need to be developed that can deliver the
technology to the common people so that they themselves can harness its power. Just as aspirin
lowers fevers in both adults and children but children need syrups while adults can handle
tablets, special delivery mechanisms may need to be developed for growing needs of the
technology. Grameenphone has not created any new technology, but it has established a new
way, compatible with economic and social circumstances in rural Bangladesh, to provide access
to telephones for the rural people in Bangladesh. Country like Bangladesh where people have
dreams, not the ability. Besides, the real truth “whether technology drive strategy or strategy
drives technology” – is a challenge for the organization in the dynamic world. So, a big question
mark is still there, between the Grameenphone and user group. – How much to provide, what
should be the ideal limit, what should be the charge, are they liable to change, viable to operate
in the locality, and are the people really want those extra? Therefore, GP will go for the user to
solve or consider it as mission impossible!!
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References:
GP Compensation policy
Telenor Profile
www.gpcic.org
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Apendix
Due to company confidentiality I failed to provide other references.
Questioner:
Company & Contact Information 1
Contact Regarding Data Submittal: Name and Address for Survey Results:
Name:_______________________ Name:______________________________
Title:________________________ Title:_______________________________
Company Information:
Type of Business:
Number of Employees:
Does your company utilize a broad band system? [ ] Yes [ ] No If yes, what is the band width?
How is progression in the job grade determined? [ ] Time on job [ ] Merit [ ] Established steps [ ] Other
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Does your company have a bonus or incentive plan? [ ] Yes [ ] No
Does your company have a formal employee merit review process? [ ] Yes [ ] No
Benefit Information 3
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