1. 1
Letter of Transmittal
August10, 2014
Khaled Shams
Course Instructor
MGT422 (compensation management)
BRAC Business School
BRAC University
Subject: Term paper submission.
Dear Sir,
With due respect and regards here is the report on “compensation management & salary survey
on Grameenphone” that we were due to complete as part of our Compensation management
coursework. We are truly thankful to our respected course instructor Khaled Shams sir for
assigning us to do such a course work through which we have learned many things which will
help us in the future course of work.
We have tried our best to work closely with the company & maintaining the deadline of the
submission. However, if any mistakes are found, we are sorry for that. With this we are
submitting the term paper for your perusal.
Sincerely,
Mobasshera Jahan 11204090 …………………
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Executive Summary
It is the leading telecommunications service provider in the country with more than 16 million
subscribers as of December 2007.
Grameenphone has been recognized for building a quality network with the widest coverage
across the country while offering innovative products and services and committed after-sales
service.
Grameenphone has always been a pioneer in introducing new products and services in the local
market. GP was the first company to introduce GSM technology in Bangladesh when it launch
edits services in March 1997.The technological know-how and managerial expertise of Telenor
has been instrumental in setting up such an international standard mobile phone operation in
Bangladesh. Being one of the pioneers in developing the GSM service in Europe, Telenor has
also helped to transfer this knowledge to the local employees over the years.
It also looks into the possible shortcomings in the way human resource policies are conducted at
Grameenphone Ltd and appropriate recommendations are provided for improvement.
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Chapter: 1
1.1GrameenPhone Profile :
GrameenPhone is a dynamic and leading countrywide GSM communication solutions provider.
It is a joint venture company between Telenor and Grameen. Grameenphone Ltd., the largest
telecommunications service provider in Bangladesh, received its operating license in November
1996 and started its service from March 26, 1997. Now, after 13years of successful operations,
Grameenphone is the largest mobile phone service provider in Bangladesh, with more than 28
million subscribers as of November 2008.
In this research, we want to know the customer perception, satisfaction of the service quality of
Grameenphone.
1.2 Scope of the Study:
The study will be conducted on’ compensation Management in Grameenphone Ltd. to construct
a critical analysis on salary survey. It also includes the Compensation and Awards for
employment perspective from a holistic point of view. This Project report covers:
1. Literature Review – A brief review on the theories and principles of Grameen phone Ltd.
operating in Bangladesh.
2..Description of Grameenphone Ltd. as a company – A description of the establishment
of Grameenphone Ltd. its mission, vision, goals, objectives, approaches, activities, area
coverage, administrative structure, legal entity and other information.
3. Compensation of the organization – a brief discussion of the compensation process and
practices of the organization.
4. Performance Appraisals and promotions of the organization – A brief description of
theorganization’s current practice in the sectors of performance appraisals and promotions.
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5. A Summary of the Findings and Evaluation – A brief description of the findings and
evaluation of my study from a holistic point of view.
This is merely a descriptive report. Most of the data’s and information’s are collected through
informal interviews with the respective executives.
1.3 Sources of Data
All the required information were gathered at the source through informal interviews, careful
observation, consultation of books, Grameenphone Ltd’s internal circulars, Grameenphone Ltd’s
HR manual and office records. For this purpose the General Manager and some Executives
(Admin) has been interviewed. The major sources of information for study are as follows:
1. Secondary Data:
a)Reports and Documents of the Grameenphone Ltd. i.e. Annual Reports, Brochures etc.
b)Internet.
c)Business and Trade Journals.
d)Newspapers and Magazines.
e) Others.
2. Primary Data:
a) Interview with the Grameenphone Ltd’s Employees and Personnel.
B) Observation.
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1.5 Methodology used for the Data Collection:
1. Literature review– A wide range of literature will reviewed to gather necessary information
about the subject matters of this study. These literatures include the texts, profile, annual reports,
documentation, different Manuals etc.
2.Observation– A thorough and insightful observation will be conducted on the various
Administrative, Interventional and Marketing philosophies, approaches and practices to collect
benchmark information.
3. Interview– Study and information gathering through interviewing employees and personnel
involved in the ACI’s interventions, administration and other activities.
4. Field visits– Visit to the field level activities to generated vital information and enhanced the
study.
5. Discussion– Discussion with the staffs and other related persons to generated
benchmark information for the study as a comprising tool and also important instructions from
the project supervisor.
1.6 Limitations of the Study:
The major limitation of this report is that no previous study is done before on
GrameenphoneLtd.’s overall HR practices. So no secondary study material was available. The
study is heavily relied on observational and informational method which has its own
disadvantages and not a very effective method. There is a particular department for HRM but
they don’t share all things for their law specially their compensation part. So that I had to gather
some data through assumption. Although the MD and the administrative officers’ & HR
officer’s give some information about HR practices. Employees were reluctant to give
information, as they are afraid that their corporations’ information might get licked outside.
Some other limitations of the study are mentioned below –
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1. Competitors’ information could not be gathered due to their privacy policy. That’s why
competitive analysis could not be made.
2. The volume and magnitude of information collection is another limitation of this project. The
amount of information needed to conduct such type of assessment is vast, but that could not be
gathered. That’s why; the project might lack sufficient clarity and credibility. Rather, it
recommends further and larger study on the matter.
3. The study area will be the non-government organization so the collection of information’s
quite hard.
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Chapter: 2
2.1 Company Introduction:
Grameenphone Ltd. has stepped into its 11th year of operation, having completed its tenth
year on March 26, 2007.
It is the leading telecommunications service provider in the country with more than 16 million
subscribers as of December 2007.
Grameenphone has been recognized for building a quality network with the widest coverage
across the country while offering innovative products and services and committed after-sales
service. Grameenphone has always been a pioneer in introducing new products and services in
the local market. GP was the first company to introduce GSM technology in Bangladesh when it
launch edits services in March 1997.The technological know-how and managerial expertise of
Telenor has been instrumental in setting up such an international standard mobile phone
operation in Bangladesh. Being one of the pioneers in developing the GSM service in Europe,
Telenor has also helped to transfer this knowledge to the local employees over the years.
2.6 Vision:
We’re here to help (This vision crystallizes customer focus as the cornerstone of everything they
do: helping customers get the full benefit of communications in their daily life.
2.7 MissionStatement:
The vision will be achieved by
*Connecting Bangladesh with ease and care
*Being user-friendly
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*Providing value for money
*Providing simple and timely connections
*Having a right and understandable process.
Values:
Make it Easy; Keep Promises, Be Inspiring, and Be Respectful
We’re practical. We don’t over complicate things. Everything we produce should be easy to
understand and use. No waste. No jargon. Because we never forget we’re trying to make
customers’ lives easier.
For our customers, making it easy will be addressing some very fundamental customer needs.
They need simplicity. Solutions and services that are easy to buy, easy to use and are built to
meet their needs. Solutions and services that work well. Everything we set out to do should
work, or if you don’t get it, we’re here to help. We’re about delivery, not over promising –
actions not words. For our customers, this will mean they can build trust in us. The solution or
service works - if not, we are there to make it work. They need us to deliver on time, to expected
levels of quality, and at a fair price. They need us to be strong on action, not on fine words! For
employees everywhere, this means… We follow through. We never launch something new
before it works as it should work. We arrive on time and we deliver on time. We commit to
concrete, realistic promises to our customers – and deliver on our promises.
We are creative. We strive to bring energy into the things we do. Everything we produce
should look good, modern and fresh. We are passionate about our business and customers.
For our customers, this will mean they will want to engage with us, will appreciate our
innovative and modern approach, will appreciate our future proofed solutions and services, and
will acknowledge our category leadership. For Telenor employees everywhere, this means… that
we live up to the challenge and inspire our colleagues and customers ‘walk the talk! We must
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call for creativity at every level, show care, energy and passion. Be fresh and direct, and
demonstrate a can-do attitude.
We acknowledge and respect local cultures. We do not impose one formula worldwide. We
want to be a part of local communities wherever we operate. We believe loyalty has to be
earned. For our customers, this will mean each of them can expect to be treated like an
individual. Each of them will feel valued, understood and listened to, and their needs acted upon.
2.9 Organizational Overview:
Grameenphone Ltd. is a joint venture of two different companies of two different countries.
Grameenphone is the largest cellular phone operator in the industry in Bangladesh. The company
holds the majority market share and largest subscriber base in the industry. The details of the
company are discussed in the later parts
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Chapter 3
3.1 Compensation:
A job is classified according to the skills and experience required for satisfactory performance in
the job, the degree of problem-solving involved and the magnitude of the impact of a decision
to be taken as an incumbent in the job. The classification is then linked to a salary grade through
which a compensation package is made available to the incumbent of a job. Each job makes a
contribution to the successful conduct of an activity, which in turn accrues certain benefit to the
company. The compensation package, which is an expense incurred by the company, is linked to
the benefit derived by the company from the job. Each grade has a minimum level of
compensation and a maximum. The minimum is related to them market value of the job and is
verified through the availability of suitable candidates who are prepared to join at that level of
compensation. The maximum of the grade is the maximum cost the company is prepared to incur
for the contribution received from the job
.1.The employee’s performance appraisal will be made as usual.
2. Based on the appraisal, performance Bonus will be payable as usual.
3. If the performance of the employee who has already reached the top of his grade is “Very
Good” or above he will get only one increment for the year. The year in which the performance
rating is below “Very Good” the employee will not get any increment. In this manner the
employee will be able to go up to 4 steps in Basic Salary beyond his grade maximum and
thereafter the basic salary will not increase any further. The allowances that are linked with basic
salary will proportionately increase. The allowances that are not calculated as a percentage of the
Basic Salary will be paid at the level of the grade maximum.
4. If an employee has not reached the top of his grade yet but his normal increment, according to
his performance rating, will take him beyond his grade maximum, he will be able to reach only
one increment beyond his grade maximum that year. From next year clause 3 will apply.
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It is hoped that employees who get stuck at the top of their grades will seek advice and guidance
from General Manager, Corporate Services about how to prepare themselves for higher grades.
Festival Bonus:
The company started payment of Festival Bonus to the Management Staff from the
year 2000.There will be disbursement of an amount equal to one month’s Basic Salary of the
employee on two designated festivals. Management Staffs those are in the employment of the
Company for at least three months after their confirmation on the date of the festival will be
eligible for the Festival Bonus. The major festivals recognized are the following:
1.Eid-ul-Fitr
2.Eid-ul-Azha
3.Durga Puja
4.Christmas
5.Buddha Purnima.
All employees of the Company, irrespective of their religion, will draw one Festival Bonus
during the time of Eid-ul-Fitr.
The other Festival Bonus will be given to the Muslim employees during the time of Eid-ul-Azha.
Employees other than Muslim will receive the other bonus according to their festival
mentioned above.
Festival Bonus will be disbursed in cash and will be paid two weeks prior to the festival date.
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3.2. Employee Relations:
The environment at Royal Homes Ltd is extremely friendly. This is very important for a property
development firm because most of the work is done in teams. However, if some kind of conflict
occurs among employees, the Line Manager usually solves the issue.
3.3. Performance Appraisal:
The performance of each employee is closely monitored by their immediate managers. If
the broad objectives of the job are clearly understood by the Appraiser and the Appraisee and the
Action Plan along with the criterion of assessment is clearly agreed between them, appraisal
should be a relatively easy task. If both parties are realistic, pragmatic, fair and objective in
their evaluation of performance, there should be very little variation in their scoring and
completion of the Performance Appraisal Form. The Appraise has to dispassionately analyze
his/her performance and fill in the form with an attitude of trust and fairness in the judgment of
the superior. In rating the overall performance, the Action Plan achievements will have 50%
weight age. The quality of performance in accomplishing the overall objectives of the job will
have the other 50%weightage. The rating for overall performance will therefore have equal
emphasis between specific tasks and the general objectives of the job. Management Staff
Performance Appraisal Form will be provided in duplicate by the Appraiser to the Appraise. The
Appraise will fill in the requisite places on the form and return one copy to the Appraiser. The
Appraiser will first complete his part of the form and then fix a date for Appraisal Interview. The
interview should be held in a relaxed and congenial atmosphere and the entries on the form
should be gone through together item by item. There will no doubt be difference in perception
of achievement and of performance on the job but the differences should be discussed in
constructive manner so that any misunderstanding is removed and the gap in perception is
narrowed down. The Appraiser will have the right to modify his remarks or to change his rating
in the light of the Appraisal Interview but his original remarks and rating must remain legible.
The Appraiser will then pass on the form to his superior who, if necessary, will revert back
or else send the form to the General Manager, Corporate Services at Head Office for review by
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the Managing Director and consolidation. It is to be borne in mind by the Appraise that the
ability to judge his/her own performance fairyland dispassionately, both with regard to the
Action Plan as well as the overall performance, will be considered as a good managerial quality
called objectivity.
He Appraiser, on the other hand, must make a realistic comparison between standards agreed and
those achieved; and keep in view unanticipated constraints which could not have been overcome
through other initiatives or innovative actions. Needless to emphasis that rating of overall
performance is not an exercise in numbers. The external and internal environment in which the
job was performed and the threats and opportunities that were encountered should be taken into
account while determining the score. Above all, while judging the overall performance both
parties must keep in view the performance during the whole year and guard against the fact that
recent issues and events may unduly influence their judgment. The Appraisal Rating will
determine the quantum of Performance Bonus the Appraise will get and the level of Annual
Increment of basic salary that will be applicable at the time of salary review in the following
July.
3.4. Employee Safety & health:
For employee safety and health the company gives medical Benefit for All Permanent Staff:
1. In case of hospitalization of the staff, spouse or any dependant child, in any recognized
hospital or clinic, the Company will reimburse 50% of the hospitalization charges, which will
include bed/cabin rent, doctor’s fees and laboratory tests & medicine required during the period
of hospitalization. All other charges will be borne by the staff.
2. In case of surgery, the Company will reimburse 75% of the total operation charges comprising
of surgeons fee, anesthetist’s fee & O.T. charges and cost of medicine related to the surgery.
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3. Prior approval from the Head of the Business is necessary before hospitalization or surgery.
The name of the patient and the name of the hospital/clinic need to be stated while taking the
approval.
4. Department Heads will approve advance against surgery for staff on a case-to-case basis.
5. Expenses for Delivery under Caesarean Section will be reimbursed as per clause
2.Reimbursement of more than two children will not be allowed. These rules will be subject to
modification from time to time at the discretion of the Company.
3.5. Employee Motivation:
Profit Sharing:
The most significant employee benefit offered by Grameenphone Ltd is Profit Sharing. The
profit sharing takes place once a year: July. Only the senior employees who are around two or
more years get 20% share of the profit earned. Out of this 20% profit, 75% is distributed in terms
of seniority and designation and the rest 25% is distributed on performance in that period
Performance Bonuses:
Performance bonuses are given on the basis of performance in a given year. This happens
after the yearly appraisal. The reviewer (usually the immediate boss) notes down the
performance of the employee on a given set of characteristics and sends it to the MD. The MD
then takes the decision on the performance bonus. However, all decisions regarding performance
bonuses by the MD needs to be approved by the Board of Governors.
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Reward:
This reward system does not have any fixed criteria. This is basically an additional reward
system, which provides financial incentives to employees for extraordinary performance in any
area of their job.
Services Benefits:
Soft Option has a number of service benefits which is typically not found in other companies.
Among the benefits are flexible working hour: one can start their office on 8am in the morning
and leave by 4pm.-provide transport or transport bills while attending a client meeting.
-Provide lunch from the office which is prepared in the office.-have provision for the employees
to participate in different training programmed as well fund any professional certification exam
from IBM, Sun, Microsoft, Oracle, etc at company’s own cost.
Yearly Picnic/Tours:
Grameenphone Ltd bears the expense of one tour/picnic per year for each employee. The
company covers all transport, hotel and food expenses. This usually refreshes the employees a lot
and makes room for them to interact and know each other better.
Compensation Systems of Grameenphone
The compensation structure of Grameenphone is designed in such a manner that attracts, retains
and motivates qualified and skilled employees at all levels. The Compensation Principles of the
company is to provide a level of compensation that will attract, retain and reward competent
employees at all levels considering Internal and external Equity. Meanwhile to
•Reflect the relative weight of jobs;
•Be competitive and internally consistent and fair;
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•Recognize individual performance and contribution;
•To have a fair and transparent system
•Uphold the excellent understanding and relationship with the employees.
In order to attract and retain employees, the following factors are considered to reward and set a
competitive compensation structure:
•Company financial performance and internal salary analysis
•Market dynamics
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Chapter 5
Competitor’s salary survey
COMPENSATION: Compensation is the remuneration received by an employee in return for
his/her contribution to the organization. It is an organized practice that involves balancing the
work-employee relation by providing financial and non-financial benefits to employees.
MAJOR COMPONENTS OF COMPENSATION
Basic Wage and salary plans.
•Incentives
•Employee benefits.
•Performance-based pay
ROBI AT A GLANCE:
It is a joint venture company between Axiata Group Berhad, Malaysia and NTT DOCOMO INC,
Japan. Axiata (Bangladesh) Limited, formerly known as Telekom Malaysia International
(Bangladesh). Its journey started in 1997 under the brand name AKTELL & later, on 28th
March, 2010 the company started its new journey with the brand name Robi. Axiata
(Bangladesh) Limited is a dynamic and leading countrywide GSM communication solution
provider.It has the widest International Roaming coverage in Bangladesh connecting 553
operators across 207 countries.
Compensation plan of ROBI:
SALARY & BENEFIT
Monthly salary is transferred to employee’s bank account on 25th of each month Employee
receives a monthly pay statement which shows the deductions as; income tax and provident fund.
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BONUS
Robi AXIATA usually awards two bonuses in a year on occasion of EID/Christmas/, as Festival
Bonus. The amount of bonus is normally equal to basic salary. They are also offering other
variable bonuses like; performance bonus (related with individual performance) & company
performance bonus (special bonus for company performance/success) to the employees. Its
salary survey is given below:
Job Average salary Range
Specialist - Monthly
BDT 43,250/mo
BDT 30k
BDT 50k
Senior Programmer -
Monthly
BDT 37,472/mo
BDT 33k
BDT 42k
Engineer
BDT 441,044
BDT 399k
BDT 483k
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Chapter 6
Findings and recommendation:
FINDINGS:
Our findings in grameenphone industry is that, they are practicing very sophisticated and well
accepted for each and every employee.
• Employee benefit programs are designed in such a way that ensures the employee and
employee’s family wellbeing.
• Compensation consist of two types one is financial and the other one is non-financial. GP is
very much concern about the both types of compensation planning for the employee.
• HR policies are well accepted among the employees.
• That compensation management system has a great impact on employee's efficiency and
performance in GP.
They do not follow the grades in their pay policy.
RECOMMENDATIONS:
The management authority of GP needs to look some major issues like compensation policies,
allowances and transfer policies.
• GP needs more man power for handling it’s huge volume of employee.
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• GP could work more on making the salary and benefits they provide to make them more
attracting as employees find this factor very important to boost their satisfaction level.
• The company can also provide recognition to their employees through a lot of activities at
minimum cost.
• Grameenphone can provide training on the facilities they provide, such as benefits,
Allowances etc. so that employees have more idea on utilizing the facilities they are receiving in
a proper manner.
GP should follow the grades and overlapping pay policies in their pay mix so that
employee satisfaction would increase.
Conclusion:
Ensuring management or proper utilization of resources is prerequisite for achieving the
organizational objectives because resources are limited and the proper exploitation of the
available resources can help to achieve the top position. In the competitive situation resources
are very much vital because that can provide competitive edge to the companies. The
spontaneous participation of human resource is very essential for increasing the performance.
The owner, authority, and stakeholders should remember that neglecting the human resources in
the work place a sustainable development is not possible. They should not refute the significant
roles of Human Resources rather they have to generate an idea among the human resources that
they are important part of the organization by providing reasonable wages/salary, incentives,
compensation, training and development program, as well as creating morale and maintaining a
good relationship with them.
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Appendix
1. Please answer the following questions regarding your company’s compensation practice
and policies.
2. Does your company utilize a broad band system? [ ] Yes [ ] No
3. If yes, what is the band width? ______
4. Does your company utilize a traditional salary grade system? [ ] Yes [ ] No
5. If yes, please answer the following questions. How is progression in the job grade
determined? [ ] Time on job [ ] Merit [ ] Established steps [ ] other ________
6. How often is the salary structure reviewed? ____________________
7. When was the last time it was adjusted? ____________________
8. By what percentage? ______________
9. Does your company give a general increase? [ ] Yes [ ] No
10. If yes, what percentage? ___________
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11. Does your company give a cost of living increase? [ ] Yes [ ] No
12. If yes, what percentage? __________
13. Does your company have a bonus or incentive plan? [ ] Yes [ ] No
14. If yes, please answer the following questions.
15. What type of bonus? [ ] Annual/Year End Bonus [ ] Incentive Bonus [ ] Other
________________
16. What is was the average bonus paid last year?
_____________________________
17. What is this year’s projected average bonus?
_____________________________
18. Does your company have a formal employee merit review process? [ ] Yes [ ] No
19. 15. If yes, please answer the following questions.
a) How often are employees reviewed?
_____________________________
b) What was the average merit increase for last year?
_____________________________
c) What is this year’s projected average increase?
_____________________________
