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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Table of Contents

Chapters Topics Page numbers

Chapter-1 Executive

summery

3-7

Chapter-2 Introduction 8-10

Chapter-3 Compensation 11-17

Chapter-4 Salary survey of GP 18-19

Chapter-5 Competitors Salary survey 20-21

Chapter-6 Findings &

recommendation

22-23

2

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 Mission Statement:

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 4

Salary survey of grameenphone:

job Average range

Customer Manager –

Hourly BDT 106.43/hrBDT 60

BDT 135

Marketing Manager -

Monthly BDT 50,000/moBDT 40k

BDT 60k

Customer Manager -

MonthlyBDT 27,564/mo

BDT 19k

BDT 36k

Senior Executive - Monthly BDT 42,995/moBDT 34k

BDT 52k

Senior Executive BDT 446,727

BDT 392k

BDT 501k

Systems Engineer -

MonthlyBDT 42,341/mo

BDT 27k

BDT 58k

Specialist - Monthly BDT 65,810/moBDT 44k

BDT 88k

Customer Manager n/aBDT 572k

BDT 618k

Customer Manager -

Hourly Contractorn/a

BDT 96

BDT 103

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Marketing Officer n/aBDT 77k

BDT 83k

HRM n/aBDT 115k

BDT 125k

DGM - Monthly n/aBDT 191k

BDT 207k

Executive - Monthly n/aBDT 53k

BDT 57k

Management Trainee -

Monthlyn/a

BDT 52k

BDT 57k

Internet Outlet - Monthlyn/a

BDT 7,240

BDT 7,76

Chapter 5

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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.

BONUS

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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 - MonthlyBDT 43,250/mo

BDT 30k

BDT 50k

Senior Programmer -

Monthly BDT 37,472/moBDT 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.

• 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.

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• 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? ___________

11. Does your company give a cost of living increase? [ ] Yes [ ] No

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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?

_____________________________

25

References

GrameenPhone’s Annual Report

GP’s News Letter

GrameenPhone’s web page: www.grameenphone.com

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