Analysis Report On Grameenphone Ltd

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Analysis Report On Grameenphone Ltd



1.1 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 Gramophone, 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.

1.2 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.

1.3 Scope of the Study:

The Telecommunication Service especially cellular telecom service sector is a very important and highly sensitive service oriented field as they are dealing with the flow of information. There is a close relationship between the service provider and the service receiver. As telecom service activities is basically performed by lots of equipments and logistic support of different kinds of automation, the importance of human being can not be neglected. Without proper combination of manpower and machineries success of such kind s of service is not possible. So the telecom companies have to hire a lot of skilled, experienced and hard working work forces to continue their work flow properly.

Among the existing mobile telecom services providers in Bangladesh, Grameen Phone is the pioneer and leading the market for a long time. At the same time they are maintaining an effective human Resource Department to recruit, select, placement and develop the employees. As far we know, Grameen phone follow the world class HR policies to motivate their employees like other multinational companies operating their business in Bangladesh. There is a lot to stir about within its massive internal field. We take this chance as a scope to work on the organization’s total motivation process. We hope that this study will help us a lot by matching our concept to that of the actual scenario.

1.4 Rationale of the Study:

At one time, employees were considered just another input into the production of goods and services. Their rights and the question of compensation was over looked just providing some cash benefits. At that time the employers used to think about only short term benefit of the organization as well as the relationship with the employees. So they didn’t put much emphasis on different beneficial, issues of the people worked over there.

What perhaps changed this way of thinking about employees was research, referred to as the Hawthorne Studies conducted by Elton Mayo from 1924 to 1932 (Dickson, 1973). This study found employees are not motivated solely by money and employee behavior is linked to their attitudes (Dickson, 1973). The Hawthorne Studies began the human relations approach to management, whereby the needs and motivation of employees become the primary focus of managers (Bedeian, 1993). Grameen phone is one of the multinational business organizations operating business in Bangladesh for more than 10 years and with the course of time and to cope up with the changing demand, they have established an effective HR department and some practical HR policies to handle different issues of their employees. Basically employment should be done in a way like a win-win situation where both the employer and the employee will be benefited. Grameen Phone is trying to create such an environment in their organization. So, doing study on such an organization will lead us to get familiar with the practical situations.

1.5 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.

1.6 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.


2.1 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:

¤ Questionnaire: Unstructured and open-ended questionnaires (please see appendix: 6) were asked to the employees working over there in the Gulshan corporate office of Grameen Phone to collect information about motivational factors and focused group interview session was arranged for further clarification and better understanding.

¤ 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.

2.4 Sampling Plan:

¤ Sampling Procedure: The sampling procedure has been conducted on the Deliberate Sampling method has used where the respondents and the interviewees are considered on my convenience and priority.

¤ Sampling Unit: In order to carry out the research work, the study was focused on taking the interviews of the Personnel involved in the different departments of Grameen Phone Gulshan Office.


3.1 Definition of the Topic:

It is true in our day-to-day as well as in professional life.

If we cannot motivate people around us…

If we cannot motivate our employees…

If we cannot motivate our children…

Then, we are no one to demotivate them. If we cannot appreciate then we are no one to discourage or criticize.

There is a “Positive Side” of all incidents…of all acts and actions…of every experience. Even a stopped watch also shows correct time…twice in a day. Let’s accept the fact that none of us is perfect. We all have space for improvement. We all need support to grow and excel in life and career. There are ways to “Criticize”…ways to give “Feedback” by keeping in mind the “positives”. But if we are using any of the following syntax for giving feedback…then one day we will be alone in our department/organization, such as-


But also


Let’s also accept that Human Resource Professionals are very poor in “Human Behavior” and “Human Psychology” and this should be a must for all “Human Resource Professionals”. Let’s understand that “One size does not fit all”. Most companies have it all wrong. They don’t have to motivate their employees. They have to stop demotivating them. In this article we will understand motivation; discuss the need for motivation; ways to motivations; expectations of employees and what they don’t want from us through a real example.

3.2 History of the Topic:

At one time, employees were considered just another input into the production of goods and services. What perhaps changed this way of thinking about employees was research, referred to as the Hawthorne Studies conducted by Elton Mayo from 1924 to 1932 (Dickson, 1973). This study found employees are not motivated solely by money and employee behavior is linked to their attitudes (Dickson, 1973). The Hawthorne Studies began the human relations approach to management, whereby the needs and motivation of employees become the primary focus of managers (Bedeian, 1993).

· Motivation is defined as:

Many contemporary authors have also defined the concept of motivation. Motivation has been defined as: the psychological process that gives behavior purpose and direction (Kreitner, 1995); a predisposition to behave in a purposive manner to achieve specific, unmet needs (Buford, Bedeian, & Lindner, 1995); an internal drive to satisfy an unsatisfied need (Higgins, 1994); and the will to achieve (Bedeian, 1993). For this paper, motivation is operationally defined as the inner force that drives individuals to accomplish personal and organizational goals.

A study of Motivation (Manfred Davidmann, 1970) of 255 U.K. directors which found that: –

· Motivating (in order of intensity of felt need):

1. Remuneration.

2. Profit sharing.

3. Share option and purchase schemes.

4. Bonus.

5. Pension.

· Dissatisfying:

6. Taxation.

· Neither motivating nor dissatisfying:

7. Job satisfaction.

He found that directors are motivated by money. They are not motivated by job satisfaction. In other words, they do not need job satisfaction because they have all the job satisfaction they need or want.

Hence definition of ‘motivation’, that is of what people will work to achieve:

‘Motivation towards better performance depends on the satisfaction of needs for responsibility, achievement, recognition and growth.
Needs are felt, and their intensity varies from one person to another and from time to time, and so does the extent to which they are motivating.’
‘Behavior is learned; earned reward encourages even better performance, thus reinforcing desired behavior’.

The term ‘recognition’ in the definition includes money rewards. Note that both job satisfaction and money are motivating. One works to achieve that which one needs and which one does not have, and this could be either one or the other or both.

Attaining goals leads to feelings of self-respect, strength and confidence. Few people are able to continue a pattern of achievement and success without the added encouragement provided by others recognizing their achievements.

Continued failure and frustration and defeat can result in feelings of inadequacy and a withdrawal from competitive situations.

Persistent lack of rewards leads to a view of society as being hostile and unrewarding. It is what one does not have that one wants, one works to achieve that which one needs.

Hence if we know what people need and want then we know what they will work for, and like working for, and so work well to achieve.

So that we can now look at the following articles: –

· Needs and Wants People Strive to Achieve:

1. First there are certain basic needs which have to be satisfied if people are to exist and survive, such as:

Food and shelter, clothing and warmth.

Affection and esteem.

Friendly and trustful co-operation and companionship.

Security from external threats (protection from attack).

2. Then other needs make themselves felt, such as:

Independence from domination by others (because of need, for example).

Security from internal threats (losing job, criminal activities, political persecution).

Housing, education, good health.

Help when in need.

Constructive work.

Constructive leisure activities.

3. To which we can add the ones we have discussed:

Challenging work, which means scope to work at increasing levels of skill and usefulness and thus of pay to the maximum of one’s ability.

Maintaining and the chance for improving, one’s position relative to colleagues.

Recognition of success by others (leads to feelings of self-respect, strength and confidence).

Fair share of the national income and wealth.

Fair share of the international income and wealth.

These then are the needs and wants people strive, indeed struggle, to satisfy and overcome. People will co-operate with each other and work hard and well to satisfy these needs and gain much satisfaction from doing so.

· Why we need to motivate our Employee?

The answer is survival (Smith, 1994). Motivated employees are needed in our rapidly changing workplaces. Motivated employees help organizations survive. Motivated employees are more productive. To be effective, managers need to understand what motivates employees within the context of the roles they perform. Of all the functions a manager performs, motivating employees is arguably the most complex. This is due, in part, to the fact that what motivates employees changes constantly (Bowen & Radhakrishna, 1991). For example, research suggests that as employees’ income increases, money becomes less of a motivator (Kovach, 1987). Also, as employees get older, interesting work becomes more of a motivator.

3.3 Recent Research of the topic:

After the year 2000, the concept of motivation changes as twenty first century changed the concept of management and the meaning of “employee and labor relationship” in each and every organization. Now the employer considers the employees as their assets and tries to nourish them for their further and long term benefits. That’s why in most of the organization prevails a win-win situation. Now employee and employer build their relationship where each party contributes for another.

The employees who work for your company are naturally motivated. All you need to do is to utilize their natural ability, which you can do without spending a dime. That’s right. No money. In fact, money can actually decrease an employee’s motivation and performance. The first step in utilizing your employees’ natural abilities is to eliminate your organization’s negative practices that zap away their natural motivation.

The second step your organization can take is to develop true motivators, which can spark all your employees into being motivated. By decreasing negative zapping demotivators and by adding true motivators, you will tap into your employees’ natural motivation. Your employees’ natural motivation relies on the fact that all people have human desires for affiliation, achievement, and for control and power over their work. In addition, they have desires for ownership, competence, recognition, and meaning in their work.

But there are several ways that management unwittingly demotivates employees and diminishes, if not outright destroys their enthusiasm.

Many companies treat employees as disposable. At the first sign of business difficulty, employees-who are usually routinely referred to as “our greatest asset”-become expendable.

Employees generally receive inadequate recognition and reward: About half of the workers in our surveys report receiving little or no credit, and almost two-thirds say management is much more likely to criticize them for poor performance than praise them for good work. Management inadvertently makes it difficult for employees to do their jobs. Excessive levels of required approvals, endless paperwork, insufficient training, failure to communicate, infrequent delegation of authority, and a lack of a credible vision contribute to employees’ frustration.


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:-

4.1 Cash/Direct Financial Benefits:

4.1.1 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.

4.1.2 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


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:

4.1.3 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.

4.1.4 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


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.

4.1.5 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.

4.1.6 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.

4.2 Non-Cash/Indirect Financial Benefits:

4.2.1 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.

4.2.2 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.

4.2.3 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.

4.2.4 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.

Transport Benefit for employees of DM Level and below:

  • If opted for, employees in DM and below level will get pick-up and drop services to and from convenient places near to their respective residence for arriving and departing from office. However on exceptional cases, operational employees might be given pick up and drop to and from home and technical sites by on-call divisional vehicles as per the policy guidelines for such vehicles.
  • Such pick-up and drop services will be arranged by GP vehicle or hired vehicle.
  • Route for pick and drop services shall be determined as per the actual need of the employees and in accordance to road condition by the transport section. Employees are discouraged to frequently change the route plan. Employees on board such vehicle are not authorized to change the pre-determined route or to influence drivers or fellow employees to do the same.
  • Employees shall be given the option of choosing between transport allowance and pick and drop service by filling a prescribed format.
  • In case of new employees, the declaration of his/her choice for availing the transport service or claiming allowance will be taken at joining. Based on option, new employees will be paid transportation allowance effective from the date as mentioned in the prescribed format. This will also be applicable for transferred/promoted employees.
  • Once the option has been given, employees will not be able to change their choice within the next three months, unless employees have been transferred or have medical reasons supported by documentation from registered physician.
  • Employees opting for pick and drop service shall be issued with a transport pass, which needs to be returned should the employee intend to switch the option after the specified three months or at the time of separation from employment.
  • The option will be effective from the first day of a month. Therefore, the employee will communicate their choice of option at least 10 days before the beginning of the month.
  • Transport section will monitor the use of transport facility being used by the employee in a particular route.
  • Partial allowance and one-way pick and drop service is not allowable.
  • Employees with transport pass who require working beyond normal office hours will be given staff drop by company pool vehicle at specified time on pre-determined routes. All late hour drops after dusk will be provided up to the nearest point of the employees’ home.
  • Employees with transport pass who requires to work beyond normal office hours need to inform transport section in timely manner through their supervisor enabling transport section to organize necessary number of vehicles for such drop.
  • Part-time and contractual employees will be allowed to use drop facilities as per the transport administration guideline.

Transport Benefit for Managers and DGMs:

Managers/DGM level employees are provided with door-to-door pick-up and drop services with company vehicles (please see appendix: 4). However, they too can claim for transport allowance instead of pickup and drop as per their entitlement:-

  • Employees in managers/DGM level will get pick-up and drop by the common pool vehicles designated for them. Should the road condition of the residence of manager/DGM deters vehicles to provide door-to-door service, such service shall be rendered to the nearest point of the residence of the manager/DGM.
  • Divisional/department transport can not be used for pick up or drop when common pick up drop service is available. However on exceptional cases in emergency operational requirement an employee in manager/DGM level can be picked up from his/her residence to the site and dropped back to his residence by the department’s vehicle. This practice can not be made on a regular basis.
  • Transport section, in accordance with the user shall determine the route for managerial pick and drop.
  • Managers/DGMs who fail to avail their regular drop service at the end of the work require taking common late drop. For such arrangement, concerned manager/DGM needs to inform transport section for their arrangement.
  • If any one wants to leave early due to personal reasons, s/he will not get the drop facility except emergency.

Transport Benefit for AGM and Above:

  • For employees in the AGM and above level, Grameen Phone provides company vehicles as per the following entitlement table:
  • If the vehicle plies out side the respective city area for official purpose, the fuel consumed extra will be allotted based on that vehicle’s average fuel consumption rate.
  • If the vehicle runs on CNG limit of CNG will be equivalent value of the fuel cost.
  • Grameen Phone will arrange the drivers for these vehicles with the consent of the concerned employee.
  • No spare driver is possible to be provided for these drivers going on leave.
  • On resignation of an employee entitled for personal vehicle, the particular assigned vehicle will be under the custody of administration department. Management will decide as to the use of the vehicle thereafter.
  • Car specified according to each designation can be rented by GP for employee’s use until the car is purchased and allotted to the particular employee.
  • Car purchased/issued shall be replaced after five years.
  • The car shall be retained by the user (for AGM and GM level) if it has been used by them for 5 years. If the employee leaves the company before the time period, the used vehicle shall be sent back to transport pool for transport section to dispose off the vehicle as per the asset disposal guideline of GP.
  • If an AGM is promoted to GM, he/she will continue using the same car for five years from the date of first issue/purchase.
  • If a GM/DD is promoted to a higher tier of the organization, he/she will continue using the car till authorized car as per his/her new hierarchy is provided to him/her. Upon receiving the authorized vehicle according to his/her new designation, the old car shall be retained by transport pool to be reissued/disposed off.

4.2.5 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.

o 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.

o 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.

o 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.

4.2.6 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.

4.3 Employee Development Programmes:

4.3.1 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).
  1. 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.

4.3.2 Education Grant:

An employee can avail educational grant for pursuing higher studies in a discipline related to current responsibilities or in an area where he has future career aspirations. This will enable him/her to have personal development and better contribute to the business.

· Eligibility:

Employees at any level having two year or more service length with Grameen Phone will be eligible for the educational grant.

· Details of the grant:

Grameen Phone will bear up to 75% of the total course fee, not exceeding Tk. 350,000. The total numbers of grants will not exceeding 40 per year. An employee willing to avail the grant must fill up a prescribed from available at I:/HR Forms & Format and submit to HR along with the relevant course details and fees structure. Applications for the grant must be submitted to HR at least 2 months prior to the date of commencement of the course. Applications for the grant will be scrutinized by a 4 member committee comprising of 1 person from HR and 3 senior managers from other functions. The grant will be disbursed as reimbursement of the course fee per period/semester.

4.3.3 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.

4.4 Other Benefits:

4.4.1 Working Environment:

Grameen Phone ensures a well decorated, secured and friendly environment for their employees to work with the help of modern furniture, interior design and up to date logistic in their offices. The employees feel very interested by using these users friendly systems of the organization and these modern logistics helps to increase their productivity. Grameen Phone always put more emphasis on maintaining the working environment of the organization.

4.4.2 Inflation Adjustment:

Since employee’s cost of living standard is changing over time, therefore, management urges that there is a need for adjusting average cost of living. To do this GP has devised a mechanism to adjust employees’ salary with country’s inflation rate. It is expected that such policy of periodic salary adjustment will keep money value of salaries roughly constant in terms of their ability to purchase goods and services.

The inflation rate will be calculated by collecting data from different organizations. The most recent available data of previous fiscal year will be considered. HR department will observe and collect information from similar organizations and analyze financial implications due to such adjustment. The proposal will be initiated by Director, HR and submitted to management committee for approval. Every year in December, HR will initiate the process and the adjustment of inflation with the respective employee’s basic will effect from January 1 of the next year.

4.4.3 Long Service Award:

An employee on completion of 5 years as on March 26 of each year will be acknowledged for his/her contribution to the company. The employee will receive a gift within an amount of Tk. 30,000 for completing 5 years at the long service award giving ceremony organized by HR. Those completing the 5 year tenure after March in any particular year will be entitled for the award in the subsequent year.

4.4.4 Recreation Programmes:

Grameen Phone is very much aware about the refreshment and entertainment facilities of their employees. They arrange different sort of entertainment programmes like local and foreign trip, lunch or dinner party, music and cultural programmes etc for their employees considering their position and contribution towards the organization. In fact they have a separate department to handle with these issues and they are responsible for arranging the entertainment functions.

4.4.5 Accident