A report on

Motivational factors of Grameen Phone Ltd. for their

Employees.

Submitted to:

000000

Prepared By:

Name of the Group Members: ID Number:

AMERICAN INTERNATIONAL UNIVERSITY – BANGLADESH.

Course Instructor, Business Communication
Faculty of English, American International University-Bangladesh

Subject: Submission of the report for Principles of Management.

Dear Sir,

We have a great pleasure to submit this report on “Motivational factors of Grameen

Phone Ltd. for their Employees”, which has been prepared and submitted in part-
fulfillment for the requirements of the Final Examination of Business Communication.

Grameen Phone is the leading mobile service provider in Bangladesh and providing
services to more than 10 millions of customers. So to operate their business successfully
they have a strong team with highly skilled and professional personnel. And they take
huge motivational factors to encourage their employees towards the goals of the
organization. We are highly honored to have the opportunity to work on this subject
matter which is helping us a great deal in gaining practical examples relevant to the
course.

Finally, we are truly grateful to you for giving us this nice opportunity to work on this
report, which we have considered as a great chance for us to develop our concept. The
entire group contribution has led to the successful completion of this report. Although we
have tried our best, certain mistakes and inconvenience may reside and for this we seek
pardon and hope you will accept our apologies.

Yours Sincerely,

.
 Acknowledgement

The success of this report depends on the contribution of number of people specially
those who have shared their thoughtful guidance and suggestions to complete this report.

First, we express our sincere gratitude to our honorable course teacher Mr. Ataul Haq
Qasem for his valuable contribution to the preparation of this report. He has been
gracious enough to spare time out from his busy schedule for giving us all the necessary
assistance throughout the entire period of the semester and the report writing time.
Without his help this report might not have been a comprehensive one.

We would like to give special thanks to Mr. Md. Nuruzzaman, Officer HR Operation
for giving us time from their very busy office work to discuss the things & have guided
us by giving useful suggestions and providing us data and relevant information for
completing this report.

All of our group members supported each other, throughout the making of this report and
completing it successfully. We have done some group discussions, where we shared each
other’s views on the different issues of the hospital and sequentially put all our findings
and analysis.
 Executive Summary

Employees are the important resources for an organization. If employees are reluctant to
work then the organization could not run properly according to the plan. Motivational
factors are important key to make them happy and active in workplace. For getting
practical information we have to research on an organization. We had to choose a
renowned organization which has good access for motivating employees. For that reason
we have chosen Grameen Phone.

This report explains about the motivational factors of Grameen Phone, the leading mobile
operator of Bangladesh with a large amount prior amount of market share in the industry.
Grameen Phone is providing their service to more than 10 millions of customers for 24
hours. So to provide this valued services they hired a huge numbers of talented
employees to keep their promises to the customers. Grameen Phone is not only concerned
to their external customers at the same time they are very much careful about their
internal customers (their employees) who brought the name and fame of Grameen Phone
to this stage. Grameen Phone provide lots of finical and non-financial benefits like high
salary, house rent, transportation, medical allowance, food facility inside the office
premises, recreation and amusement programmes etc. Beside the basic and monthly
salary, Grameen Phone provides regular promotion, Increments, incentives and bonuses
to their employees to make them more loyal to their organization.

In this report we tried to show that, how Grameen Phone is matching the expectations of
the employees and compensating between their jobs and benefits? So to fulfill the
purpose, we have communicated with them through e-mail, telephone and interview to
get information. We have presented here how employee could be motivated in their
workplace, why motivation is so important, and what are factors important for
consideration.

CHAPTER 1: INTRODUCTION

Background of the Industry:

During the early Nineties the Telecom sector in Bangladesh was severely under
developed when the market was monopolized by the state owned operator, BTTB
(Bangladesh Telegraph and Telephone Board). BTTB provided only fixed line telephone
services, which was heavily skewed in the urban areas where as 80% of the population of
Bangladesh lived in the rural areas. This unequal distribution of services created the
opportunity for the mobile operators. The granting of a paging service license to
Bangladesh Telecom Authority in 1989 paved the way for mobile service in Bangladesh.
Pacific Bangladesh Telecom Limited (PBTL, now City cell) operating under CDMA
technology was first granted the operating license as mobile phone operator in 1993, and
was joined by three other GSM mobile operators namely GrameenPhone, Aktel and
Sheba in 1996, 1997 and 1998 respectively. After that, Sheba telecom is acquired by
Banglalink the sister concern of an international Telecom company Orascom telecom ltd.
and a new company called Warid came into the market to provide gsm telecom service to
the customers of Bangladesh.

Company Overview:

GrameenPhone (GP) launched its mobile phone services on March 26, 1997 and since
then has become the largest mobile phone operator in the country. Its number of
subscribers has grown rapidly, as has its coverage throughout the country. The aim of
GrameenPhone is to provide affordable mobile telephone facilities in urban and rural
areas of the country. GP launched its service on the Independence Day of Bangladesh. In
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.
In 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.

In 2000, Grameen Phone 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.GrameenPhone has so far been a pioneer in introducing innovative cellular
telephone products and services to the market. 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. In August
2003, after six years of operation, GrameenPhone has more than one million subscribers.
In November 2005, GrameenPhone continues to being the largest telecommunication
operator of Bangladesh with more than 5 million subscribers.

According to recent statistic Grameen Phone is leading the telecommunication sector of

Bangladesh serving the major portion of the existing market like more than 10 millions of
customers. So to provide a wide range of communication solution and other benefits
Grameen phone developed a strong Human Resource team to operate their activities
smoothly.

Objective of the Report:

The broad objective of this report is to find out the motivational factors those are taken by
Grameen Phone to encourage their employees towards the achievement of the long term
goals and other regular organizational objectives. However the following points have
also considered as secondary objectives while preparing this report:

To fulfill the partial requirement of the Principle of management course.

To know how employees are treated in GrameenPhone.
Whether employees get enough flexibility or not in their work place we can know
through our study.
To gain general knowledge about different motivational factors
To study the trend of the motivational factors in GrameenPhone.
To identify the new opportunities which can offer a sustainable competitive
advantage to GrameenPhone
To identify the problems faced by the GrameenPhone in communicating with
employees.
And to suggest the possible recommendation.

Limitations of the Study:

In every research work there exist some limitations that the researcher faces while
conducting different activities. In the process of the research work, We also come across
certain limitations that hampered the actual findings and analysis of my research work.
Some of these notable limitations can be identified are:

• The study is mainly focused on motivational factors of Grameen Phone for their
employees; beside these, Grameen Phone has a wide rage of Recruitment & selection
procedures, Product marketing including individual and corporate telecom solution
package, value added services, Corporate social responsibilities etc that are not be
 covered in this report. So being concerned only within the motivational factors seems
to us as a limitation of the study.

• The personnel specially the HR officials are usually busy with their daily activities
and routine tasks; therefore interacting with them during their office hours was very
difficult most of the times.

• Grameen Phone corporate head office is a very secure and restricted place and the
internal environment is not as casual as any other organization’s office. They have to
maintain some rules and regulation toward access to information centre. So being
students and outsiders, we had lots of restriction to ask for and look over all the secret
and valuable confidential information about the HR policies of Grameen Phone. That
might be a limitation of this study.

• The interviewees, who are the personnel involved in the various departments of
Grameen Phone, Gulshan Branch, are the target respondents of this study, so the
respondents may be biased on certain issues that may hamper the total evaluation of
the research work.

• The study conducted can be hampered as the total evaluation of the industry cannot
be covered in a short period of time. In the cumulative time period of 6-7 weeks
analyzing the total motivating factors and the actual phenomenon on the performance
of the strategies of the organization can just be highlighted and some issues may be
overlooked.

CHAPTER 2: RESEARCH METHODOLOGY

Area of Investigation:

As the total HR activities and policies of Grameen Phone is very wide and large,
therefore this study is mainly focused on different motivational factors of Grameen Phone
for their employees based on the investigation and practical judgments of the employees
working in their Gulshan corporate office only. We will be highlighting the different
financial and non financial motivational factors taken by the Hr department of the
organization to increase the productivity of the employees and make the loyal to the
organization for a long time.

2.2 Data Collection Techniques:

◉ Observations: Researcher while visiting into the office premise had used his
own observation to collect certain pieces of information about the work place
and the working environment of the organization.

◉ Secondary information: Secondary information has collected by reviewing websites,

journals, brochures and some HR articles printed time to time and other relevant
documents.

2.3 Sources of Data Collection:

◉ Primary: The primary information is gathered through informal interviews of the

employees working over there under Finance and Customer Management
Departments, observation while physically visiting the office premise and discussion
with the potential fresh graduates who wants to join the winning team of Grameen
Phone.
◉ Secondary: Secondary sources had also used to collect information. Secondary
sources include:

• Different Prospectus, Brochures on HR activities and Motivational factors.

• Features and articles published in newspapers and other journals.
• Lecture Manual from Formal and Foundation Training Program.
• Their job description and working schedules.
• Visiting website of Grameen Phone Ltd etc.

CHAPTER 3: FINDINGS AND ANALYSIS

Application in the Work place (Grameen Phone Ltd):

Grameen Phone Ltd. is the leading telecom services provider in Bangladeshi market and
one of the renowned multinational companies operating their business in Bangladesh. So
to know about the work environment and the compensation benefits proved by the
organization, we have done a research work on them. Based on our study we found a lot
of motivational factors provided by the organization to encourage improve and retain
their employees. Grameen Phone maintain a well structured HR (Human Resource)
department including HRM (Human Resource Management), HRD (Human Resource
Development) and HR-MIS (Human Resource Management Information System) to
handle human resource both effective and at the same time efficient manner (please see
appendix 1). Each of the department plays their functions very carefully to make their
employees more productive and enthusiastic to the work.
Grameen Phone provides the following financial and non-financial facilities as
compensation and benefits package (please see appendix: 2) to make their employees
more dedicated towards the corporate mission of the organization:-

Cash/Direct Financial Benefits:

Basic Salary:

Basic salary is an important part of employee’s salary. It is paid monthly with other
admissible allowances such as house rent, medical allowances, and transportation
allowances in applicable cases. GrameenPhone will provide salaries to its regular and
contract staff according to grade and salary matrix of the company. The grade and salary
matrix of GrameenPhone is composed of 13 classified grades and under each grade there
are 10 salary steps. Each grade has salary ranges and the fixation (please see appendix 3)
of basic salary during appointment, confirmation or annual appraisal completely depends
on the discretion of management. The salary structure is kept strictly confidential and not
shared with employees or outside except authorized officials.

The features of the pay structure are stated below:

i) GP maintains a degree of fairness between the pay allocated to jobs having

different level of skill, responsibility and experience.
ii) Each step salary (other than step 1 salary) in any grade is calculated by adding a
certain fixed amount with the previous step salary. The fixed amount may vary
between grades.

iii) Employees move upward in the steps will reflect the good performance, increased
skills, work related knowledge and/or years of work with GP.
 iv) The salary structure will be rewarded after every three years in September.

For a complete month, one month basic salary applies but for fractional period, pro-rata
basic is calculated by dividing basic into 30 days as set standard.

In a number of situations, GP can deduct basic salary of the employee. They are:-

• Deduction due to absence without proper authorization.

• Deductions for damage to or loss of property/goods expressly entrusted to the
employee for custody, or loss of money for which he/she is required to account,
where such damage or loss of money is directly attributable to his/her neglect/
default.
• Deductions for adjustment of advances or overpayment, if any
• Deduction of income tax payable by the employee and
• Employee’s provident fund.



Overtime Payment:

Overtime is defined as “hours worked beyond normal working hours” that has prior
approval from department/section head. Company expects that employees shall have
proper work plan. Disorganized or unplanned work habit that necessitates extra hour 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.

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
Hourly rate = × 2
176
However, for working from 10 pm to 6 am, 3 times basic salary will be applicable.
Normally overtime will not exceed 30 hours in a month. In exceptional cases, second
level supervisor of an employee can approve overtime beyond the limit of 30 hours.

As a standard, overtime will be claimed by using a prescribed format where in the date,
time must be mentioned. The overtime claim must be endorsed by immediate supervisor
and approved by Department/Divisional Head before submission. Overtime shall not
apply in case of outstation travel or attending any training program. For contractual
employees, a monthly overtime allowances will be applicable according to following
slabs:

• Shift Allowance:-

Shift allowance is paid to managers and below level employees who work in a shift other
than normal working hours of 8 am to 5 pm. The shift allowance is paid by hourly rate.
There are different rates for different established shift jobs. Respective department can
define shift hours according to own convenience but payment will be made as per the
following table:
Shift allowance is also applicable for contract employees at the above rate. It will not be
more than Tk. 4500 in a month. In case someone’s shift duty falls in 2 defined shifts then
pro rata allowances will apply. For example, for working in shift from 2 pm to 11 pm,
shift allowance will be calculated according to the following principle:

2 pm to 5 pm : No shift allowance
5 pm to 11 pm : 6 hours shift allowance @30 per hour

When shift time ends, and employee has to work further, he/she will be compensated for
the additional hours served by either overtime (for officers and below) or extra hour
allowance (for DM/DSE, Managers/SE or equivalent position) as the case may be. But
during the defined shift hours, no overtime or extra hour allowance will apply.

Each employee is required to submit a monthly statement to finance in prescribed

allowances format. The statement must be endorsed by immediate supervisor and
approved by the department/divisional Head. In case of roaster duty pre-approvals have
to be made by the divisional heads mentioning actual hours with no major deviations.
The statement is prepared within the end of the month and the deadline for submitting the
statement to finance is 15th of the following month.

• On Call Allowance:-

On call allowance will be applicable for all regular or contract employees in manager
grade and below who may remain standby (on call duty) for emergency services to be
provided for the interest of the company. This is company’s policy to compensate those
employees for their extra hardship. The on call allowance rate is Tk. 250 per day. Such
allowance is approved in addition to overtime allowance paid to the employee. It can not
be more than 15 days in a month. At the end of each month, an on call allowance
statement of each employee has to be submitted to finance upon endorsement of
immediate supervisor and approval of department/divisional head.

• Extra Hour Allowance:-

Extra hour allowance will be applicable for the following managers in case they work
extra 30 hours or more in a month:

Increment faculties:

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 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.

Bonus Packages:

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. An example:
An employee who joins on April 1 and if there are two festival in that calendar year, then
the employee will get fractional festival bonus according to the following formula:

2 months basic × days with the company

365
HR will prepare the bonus list prior to three weeks time of Eid-ul-fitr and the respective
festival day and accounts, based on the list, will arrange to transfer bonus amount two
weeks ahead to employee’s account. An employee who joins after festival date will be
paid bonus after the end of the year. If an employee leaves the company on any day
preceding to the festival bonus payment date for whatsoever reasons other than
retirement, his/her festival bonus will not be paid.

Provident Fund:

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. A provident fund trustee,
with separate rules, is formed for managing the provident fund. The PF maturity period is
3 years. Employee has to serve minimum 3 years for being eligible for both employee
and company contribution.

Gratuity:

Gratuity is paid to an employee for providing a life time service to the company. The
eligibility is minimum 5 years service with the company. Gratuity amounts are linked
with the respective employee’s length of services which are as follows:

Gratuity Year of service

@ 1 month’s basic/for each year 5 years
@ 1.5 month’s basic/for each year 5 – 10 years
@ 2 month’s basic/for each year More than 10 years

Gratuity is equivalent to one (or more as the case may be) month’s basic based on the last
drawn basic salary for every completed year of service or for any part there of in excess
of six months.

Non-Cash/Indirect Financial Benefits:

House rent:

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 percentage is equal irrespective of employee’s place of posting.

Hard Furnishing:

Hard furnishing is an incentive given to employees to assist improvement in their lives by

buying durable household goods such as A/C, freezer, TV, home theatre system, stereo
system, washing machine, kitchen appliances, furniture etc. all confirmed employees in
Manager and above level will be eligible to avail hard furnishing according to the
following entitlement structure –
Payout of hard furnishing will be made on a reimbursement basis upon submission of the
payment vouchers of the goods purchased by the employee. An employee will be eligible
to avail hard furnishing once in every 3 years. Payout of the amount desired by the
employee availing the benefit will be done by one go. If an employee avails an amount
lower than his maximum entitlement, he/she will not be able to avail his/her remaining
balance.

Once availed, the employee has to serve the company for 3 years from the date of
disbursement of the amount. This 3 years period will be effective for any employee even
if he/she avails lower than his maximum entitlement amount. If he/she is separated from
the company before completing the 3 years period, pro-rata deduction on the basis of his/
her amount availed will be made from his/her final settlement amount. Hard furnishing
has effective from March 2006.

Medical Allowances:

Medical allowance is paid to the employee at a fixed amount and the monthly payment is
made according to their position entitlement. This is in addition to hospitalization or on
duty accident benefits, if any.

Employee Transportation Benefit:

Grameen Phone provides transport benefits to all employees as per the following
guidelines and procedures. For administration purpose 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 here in. 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.

For all employees in the manager and below level, a lump-sum amount of Tk. 100 can be
claimed as transportation allowance for each way travel to office in a weekly holiday or
other holiday in case transport could not be provided even after request is made. Such
request should be made by 30 minutes prior to end time of normal office hours of the last
day of the week. It is essential that by no means divisional vehicle be used for employee
pick and drop. The allowance for travel to office in a weekend or holiday will be claimed
by using prescribed allowances format duly endorsed by immediate supervisor and
approved by department/divisional Head.

Employee Mobile Phone:

Grameen Phone provides mobile phone to all employees that facilitates our work and
establishes communication between employees and family. In regard to the use of mobile
phone, there are a number of guidelines that every employee has to follow strictly.

• For regular employees:

Company approved handsets will be provided to all regular employees for a 2 year
term. After 2 years new handsets will be issued. If any employee resigns before 1 year
period from the issuance of handsets, then he/she has to return the handset back to GP
or may keep the handset by paying the proportionate amount. If the resignation takes
place on or after 1 year of the issuance of the handset, the employee may keep the
handset by paying Tk. 2000 for it. If an employee resigns on or after 2 years of
issuance of handset, then they can keep the handset for free.
 • For Contractual employees:

The handset will be given to those contractual employees (based on requirement)

whose agreement is for at least 1 year and the cost would be deducted from respective
divisional budget. However, in case of business requirements, lesser duration may be
considered. For resignation cases, same policy applies as of regular employee.

• For consultant (local & foreign):

The respective department/division will provide handset to consultants, based on

requirement, from divisional budget. If any consultant wishes a handset for their
family members, they would by the handset in their own.

• For driver and support staff:

The handsets would be issued by the third party through agreement. GP will pay bill
up to certain limit.

• For BR employee:

Respective division will handle new issue, loss and theft cases of BR employees
according to their divisional budget/policies.

❖ Tariff Rate:

Employee mobile phone tariff rate under GP account will be as under (Except BR
employee):

• 1 second pulse
• GP employee to GP employee; free
 • GP employee to any other GP number; Tk. 2/min (both peak & off peak)
• GP employee to other operators; existing rate applies.

❖ International Roaming:

The following terms and conditions will apply in case of availing international roaming
facility:

• Employee must have international credit card.

• Employees inform HR first time when go to abroad on official or personal trip.
• Finance collects employee’s credit card information and auto debit authorization
before roaming. Employee will inform credit card related updated information to
finance e.g. renewal, change, loss etc.
• If employee’s mobile usages bill is within limit, roaming bill will be adjusted
from company account. When usages bill exceeds the defined limit, deduction
will be made from employee’s credit card. However, justified excess usages for
official purpose will be reimbursed accordingly.

❖ Mobile usage limit:

Company will bear phone bill up to certain limit for different level of employees. The
limits are:

Respective division will decide mobile usages limit for contract employees/consultants in
line with the above usages limit policy. Consultant’s mobile bill due for personal calls
will be paid by themselves. In case, an employee’s usage amount exceeds the defined
limit in any month, finance will deduct exceeded amount from the following month’s
salary.

Children Education Allowance:

Children education assistance is an incentive to share employees’ children’s educational

expenses. All confirmed employees will be eligible to avail children educational benefit
according to the following entitlement structure –

To avail the children education assistance, an employee must declare and record his/her
child’s information and submit an attested/ certified copy of the birth certificate of the
child to HR. the amount will be paid out with the monthly salary of the employee. An
employee can avail this benefit for all of his/her school going children below 18 years of
age. For both the parents working in GrameenPhone, only one claim will be allowed. The
children education benefit was effective from March 2006.

Employee Development Programmes:

Training and Employee Development:

As a pert of individual development plan, the training policy provides a guideline to
facilitate job specific functional improvement, development of managerial competencies,
understanding of the cross-cultural processes and activities and/or other general areas that
need to be improved (please see appendix: 1).

❖ Training Category:

There are 4 categories:

1. Functional Training: Functional training is aimed to increase the job related

technical/functional know how of an individual such as GSM training for
technical division, selling and salesmanship training for sales department etc
(please see appendix: 5).

2. Management Development Training:

• Management Training: Management trainings are designed to enhance the

managerial competencies to help the individual perform his/her job effectively.
For instance, leadership skills course, team working program etc.

• Cross-functional Training: cross-functional trainings are conducted in house

with view to increase the participants understanding of the different processes and
procedures of other divisions to achieve better coordination, efficiency and
working relationship. Example: Finance for non-finance course, marketing for
non-marketers etc.
• General Training: General trainings are those that will help employees to
increase their productivity by handling job related issues like stress management,
business English etc.
 ❖ Responsibility:

Training is a shared responsibility of the employee and the company. The responsibilities
for training are divided as follow:

HR development, Human Resource Division is responsible for facilitating local and

foreign training for GP employees according to Performance Management Process
(PMP). In addition, HR development is responsible for designing in-house management
training programs. HR development must be informed of and be involved (if necessary)
in any training program organized within divisions.

Smooth Promotion Policy:

Promotion will mean a move to a higher grade with a larger scope of job. After successful
completion of individual training, Grameen Phone promote to their employees to a higher
position with greater responsibilities based on their performances and future potentiality.

Situations for promotion:

✓ Creating a new position, due to organizational re-structuring, or due to significant

increase in the scope of a particular job.
✓ Vacancy at a higher grade position.
✓ Creation of new position.

Respective functions will initiate a proposal and submit it to HR justifying creation of

new position. The proposals will be forwarded to HR on a quarterly basis, if any. A cross-
functional committee will review the proposals for approving the new positions up to
manager level. Incase of positions above manger level, the proposal will be sent to MT
for approval.

The cross-functional committee is consisted of 4 persons. Configuration of the committee

is given below:

✓ 1 from HR
✓ 2 from line function, and
✓ 2 from other functions.

Once the positions are approved, HR will circulate job posting internally and usual
selection procedures will be followed. In case of non availability of the right resource,
external recruitment effort will commence. The person whose scope of job has
significantly increased and lead to creation of the new position should also apply against
the job posting.

CHAPTER 4: RECOMMENDATION

Grameen Phone Ltd. Is the success full Telecommunication services provider in

Bangladesh. Their employees are the main catalyst behind their success and market
reputation. They are contributing their best efforts towards the attainment of the goals of
the organization. On the other hand Grameen Phone also providing them lots of financial
and non-financial benefits to the employees to compensate their skills, time and effort.
But we think Grameen Phone may undertake the flowing activities to motivate their
employees better than now:

• No doubt Grameen Phone providing better salary comparing with the other existing
telecommunication and Multinational Companies in this country, we think the entry
 level or junior levels of employee get less amount of money and facilities considering
their work pressure and continuous work load.

• Grameen phone take the fresh graduate as contractual employees rather than
permanent member of the organization. At the time of their contract period they don’t
get 100% extra benefits (benefits beside basic salary) comparing with the permanent
job holders.

• It is seen that, most of the time Grameen Phone go for internal recruitment policy. So
the fresh graduates who apply by online and send hard copies of their resume don’t
get the job even they don’t get the chance to prove themselves whether they are
eligible to get the job or not. It creates a bad impression about it’s HR policies and the
reputation of the organization. So, Grameen Phone may take care about these issues
in near future.

• Grameen Phone provides Hose rent, Transportation, Medical allowance, fund for
purchasing home appliances etc to motivate their employees. But the major portion of
these facilities enjoyed by the top level management like DGM, AGM and the high
officials. So the junior does not get the equal opportunity of these benefits.

• Most of the time Grameen Phone changes the job of their employees and transfers the
employees from one place to another. At that time sometimes the junior level officers
and other contractual employees utmost difficulties regarding their education,
accommodation and other issues. But only for the survival of their job, they have to
respect the rule of the organization. So they may consider these issues very carefully.

CHAPTER 5: CONCLUSION
Motivated employees are crucial to a company's success-this has never been truer than
today, when margins are thin (or nonexistent) and economic recovery remains elusive.
And each an every talented employee is the valuable asset for an organization. The main
reason behind that an organization has to invest a lot of money to select, hire train and
nourishes a good employee. An organization recruit the unemployed people from the
labor market and make them Human resource of the organization and as well as asset of
the country. Grameen Phone also thinks about their employees similar way. They invest a
lot of money to create a effective employee and always try to keep them in their
organization. That’s why beside basic salary, they provides lots of other benefits to
motivate the employees. Grameen Phone is operating their business all over Bangladesh
by served by more that thousand of people and regularly providing them a standard
compensation and befit package.

Grameen Phone is very keen to keep their employees satisfied. Their human Resource
Management, Human Resource Development and Human Resource Information system
working combaindly to fulfill the demand of the customer according to their contribution
towards the organization. So the employee switching rate from is comparatively blow
from the other organization operating business in this industry. That’s why Grameen
Phone is leading the market of telecommunication for long period.

Appendix: 01
Human Resources Department (HR)

Human Resources (HR) Department, an important department of Administration Division

plays very vital role in the total functioning of GP. Employee recruitment, selection,
transfer, promotion, training, performance appraisal - all these are conducted by HR
division. The informal structure of HR according to its functions can be classified into
three main categories they are:
• Human Resource Management (HRM)
• Human Resource Development (HRD)
• Human Resource management Information system (HR- MIS)

❖ Human Resource Management: -

HR Management functions:
Manpower planning is an important function of HR management section. Two major
activities in this function are:

• Planning and forecasting the organizations short tern and long term human resource

requirements.
• Analyzing the jobs in the organization and determining skills and abilities that are
needed.

Manpower planning is a lengthy process involving several steps. It starts from need
assessment and ends with recruitment.

At first, all the departments after employee need analysis send their requirement to HRD
through their respective divisions. After obtaining necessary approval from the
management, HRD sets target, and prepare recruitment planning. According to job
specification HR goes for recruitment.
• Recruitment process is as follows:

• Give advertisement in the daily newspapers

• Receive applications and file them,
• Shortlist of the applicants
• Fix date and time of a preliminary interview
• Contact with the applicants and inform them about the interview over telephone or
letter
• Fix further date and time for final interview if it is required and inform the
interviewee accordingly
• To prepare appointment letter for the finally selected interviewee
• Give appointment to the person with a detail job description.

Immediately after the recruitment separate employee file is opened comprising all the
relevant information of the particular employee. This personal file is prepared,
maintained and updated by HRD. In fact one of the main responsibilities of HRD is
updating of all the personal file of the employee.

Performance appraisal is another main function of HR Management. Performance

appraisal is any personnel decision that influences the status of the employee regarding
his confirmation, increment, promotion, and transfer.

GP performance appraisal takes place in two stages-

• On completion of probation
• On completion of one year of service.

Performance of an employee takes place by following some steps-

a. Job analysis
b. Set up performance standard and
c. Appraisal interview.

• Leave management:
Leave management is an important function. HR has opened a leave management
database to obtain current leave status of all the employees of Grameen Phone. It
provides employees about their leave status when it is necessary.

HR Management also deals with some personnel functions like show cause, termination,
Dismissal, discharge, and resignation. It also issues circular as & when required, conduct
department inquiry, and all other functions related to HR.

❖ Human Resources Development (HRD): -

An organization’s performance and resulting productivity are directly proportional to the

quantity and quality of its human resources. While employee performance must be
evaluated in economic terms of efficiency and effectiveness, it can be best achieved
through recognizing and enhancing the human dignity of each employee. The quality of
the human resources can be effectively increased through education, training, and
personal development.

Human Resources Development functions aim to increase the quality of the human
resources especially through training.

GP training involves the following steps-

• Assessing training needs
• Selection of the participants
• Conduct training programs.

• Different training programs of GP:

GP Provides both local and overseas training on the basis of the need analysis of the
employee. After performance appraisal GP undertook special training programmes for
selective individuals based on their lacking and future potentiality. These are like:
 ▪ Local training:

Local training can be both-Inside GP and Outside GP. Induction/Orientation training

Program falls under inside GP training category. After joining, it is the responsibility of
the HR to conduct induction/orientation training to the newly recruited personnel to
provide a general introduction of the company. To prepare training plan, participant’s
list, and training schedule for induction training - HR department does all.

Inside GP training will cover Management training will cover Management training and
Department training in near future. Out side GP training means to take part in training
programs offered by different training institutions/universities on different subjects.

▪ Overseas training:

After need assessment employees who need overseas training are sent abroad for
overseas training. Expenses of overseas training are generally borne by GP. The
particular employee who has been selected for training has to sign a surety bond for
specific period of time for overseas training.

• Besides the above mentioned works, some routine functions of HRD are:

• Prepare, maintain and update training related database.

• Prepare career development plan
• Prepare induction training manual/modules
• Evaluate training program
• Make agreement between GP & employees for overseas training
• To communicate with different local training institutions
• To communicate with trainers/instructors.

❖ HR Management Information System (HR-MIS): -

HR-MIS Functions involve-
• To maintain & update employee database
• Maintain employee related different statistics
• Any other works which requires updating employee data.

Though job has been classified and assigned according to the nature of the functions of
HR Department, the job is accomplished and the responsibility is carried out co-
operatively.

HRD plays a very crucial role in the functioning of GP. This is a very flexible and open
department, as it always has to gather and store current and exact data and information
regarding the employee and the organization.

Manpower planning is a lengthy process involving several steps, it starts from need
assessment and ends with recruitment.
At first, all the departments after employee need analysis send their requirement to HRD
through their respective divisions. After obtaining necessary approval from the
management, HRD sets target, and prepare recruitment planning. According to job
specification HR goes for recruitment.

Appendix: 02

Compensation Benefits
Compensation is what an employee receives in exchange for his/her physical and mental
works, and contribution to the company. It does not represent only salary but a wide
range of benefits and service are part of the total compensation package. Grameen Phone
wishes to pay rewarding and competitive salaries to attract, retain and motivate
competent and skilled employees at all levels of the company. By rewarding and
competitive salaries we mean that each employee should be rewarded in accordance with:

a) What the post requires.

b) How skilled the employee is and
c) What the market pays for work of the same type.

Grameen Phone 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, GP determines a
number of criteria for designing a compensation system, those 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 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.

• Competitiveness: There are obvious affect of market forces on compensation.

Compensation must respond to the supply of and the demand for employees in the
market since employers compete for work force.
• Cash and non-cash benefits: Cash payment motivates employees through monetary
rewards such as salaries 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.

• Consistency: All-out efforts are made to ensure that compensation system is

consistent with HR policies and it is uniform and stable.

Appendix 03:

Fixation of Salary:

GrameenPhone wants a salary system which rewards qualification, good practice and
performance. During fixation of employees’ salary, GP looks at the following criteria:

• Company’s affordability to proposed salary level.

• Competitive pay in the market for similar job.
• Growth of the company.
• Individual’s economic welfare.
• Fairness and equity.

There are number of ways GP fixes employees salary. They are:

 i. During appointment through salary negotiation. The salary for the new hires will
be fixed based on the position level, applicants’ qualifications, skills, experiences
and budgetary provision.

ii. Year end inflation adjustment with the basic salary.

iii. Salary adjustment during confirmation, based on performance.

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.

Appendix: 04

Car Scheme Option for DGM Level Employees:

Under this scheme, company will finance to support all confirmed employees in the
DGM level to have their own transport for personal convenience and safer mode of
transport.

Type of car:
Employees can purchase new or unregistered reconditioned cars.

Value Ceiling:
The maximum car value is specified.

Employee’s Contribution:
Individual employees availing the car scheme will have to bear 1/3 of the total cost of the
car.

Insurance and Registration Costs:

The insurance and registration costs of the car will be borne by the company.

Inspection of Reconditioned Cars:

Reconditioned cars may be purchased within the value ceiling. Purchase of reconditioned
cars will be subject to inspection procedures and engine analysis as per company
specifications in a reputed workshop designated by the company. The company’s decision
as to whether a reconditioned car meets the inspection standards will be final.

Fuel and Maintenance Allowance:

All fuel, maintenance, repair, servicing, and replacement of parts and/or similar costs will
be provided.

On Promotion:
If the employee gets promoted to AGM during/before the expiry of the scheme; the
company will pay the remaining balance of the total amount and take ownership of the
vehicle. The employee will continue using the car with full support and at the remaining
period of the five years term he/she will own the car.

Reference or Bibliography:
Books and Articles:

Smith, K. L. (1990). The future of leaders in Extension. Journal of Extension, 28 (1)


Skinner, B. F. (1953). Science and Human Behavior. New York: Free Press



Harvard Management Update, "Stop Demotivating Your Employees", Vol. 11, No. 1,
January 2006



Kovach, K. A. (1987). What motivates employees? Workers and supervisors give
different answers.



Business Horizons, 30. 58-65

Harpaz, I. (1990). The importance of work goals: an international perspective. Journal of
International Business Studies, 21. 75-93.


Websites:

www.grameenphone.com
www.google.com

Appendix: 05

Training process:

Training Catalogue:
HR development publishes a training catalogue containing names of available training
programs, a short description of the courses and eligibility to receive a specific training.

Need Analysis:

The training need is obtained from performance management process (PMP).

Management development training related data derived by organization development
processes section of HR development are accelerated to knowledge and skills section-
HR development for analysis, compilation and preparation of the training calendar.

Training Calendar:

Training calendars are prepared twice a year, April to September and October to March,
respectively. HR development prepares the half yearly training calendar to actualize
management development training need.

Selection of participants:

HR development addresses the participants in a group of fifty (50), taken from the
development plan of PMP, and invites participants via email.

New Employee Orientation Program:

When a regular employee joins the company, the individual needs to be introduced to his/
her job as well as to the company. The objectives of the orientation are:
 ✓ To welcome the incumbent
✓ Orient him/her about the company’s vision, values, purpose, stakeholders,
subscribers, service rules, divisional activities etc.
HR development will arrange an orientation program. The representatives from each
division will make divisional presentation. Preferably each employee should attend the
next available orientation program within 6 months from the date of his/her joining.

Training procedure and administration:

To attend trainings, short term courses, workshops, seminars and conferences, the
training/travel information from must be duly filled up the employee and sent to HR
development upon budgetary clearance and necessary approval from the line manager/
divisional head and Managing Director (Where applicable). The cost controller for
technical division and finance for all other division endorses budgetary clearance.