HRM GP Print

8/13/2019 HRM GP Print

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HRM PROBLEMS, APPROACHES, AND CHALLENGES AT GRAMEENPHONE

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Introduction

Human resource management always deals with the proper utilization of human resources of the

organization. I have studied many theoretical aspects in the classes. To get more knowledge

about actual conditions i need to study in practical situation, which is conducted through project

works. That is why I have selected Grameenphone Ltd. for my report study in Human Resource

Management side. I am covering the HR problems like Equal Employment Opportunity (EEO),

change in management, incremental policy change, major update in company strategy,

restructure, new approaches which is needed to ensure ongoing competitive advantages like

empower, leadership to every level of employee, job evaluation, job matrix etc , and HRM

challenges which will face 21stcentury of Grameenphone Ltd. I gave the priority to

Grameenphone Ltd. as I have direct working involvement with this company. I have also

considered the significance of Grameenphone Ltd. in the perspective of historical value, market

position, diversity of the workforce and some other issues.

Grameenphone

Before Grameenphone inception, the phone was for a selected urbanized few. The cell phone

was a luxury: a flouting accessory for the select elite. The mass could not contemplate mobile

telephony as being part of their lives.

Since its inception Grameenphone has built the largest cellular network in the country with over

13,000 base stations in more than 7000 locations. Presently, nearly 99 percent of the country's

population is within the coverage area of the Grameenphone network. Grameenphone has always

been a pioneer in introducing new products and services in the local telecom market. GP was the

first company to introduce GSM technology in Bangladesh when it launched its services in

March 1997.

Today, Grameenphone is the leading and largest telecommunications service provider inBangladesh with more than 40.1 million subscribers as of October 2012.

Grameenphone has about 5000 full and temporary employees.


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300,000 people are directly dependent on Grameenphone for their livelihood, working forthe Grameenphone dealers, retailers, scratch card outlets, suppliers, vendors, contractors

and others.

Grameenphone has so far invested more than BDT 17,800 croreto build the networkinfrastructure

Grameenphone is one of the largest taxpayers in the country, having contributed morethan BDT 27,900 crore in direct and indirect taxes to the Government Exchequer over the

years.

Recent Update

2G License renewal

The renewed 2G license awarded to GP on7th Aug12. VAT rebate mechanism as per the decision of inter ministerial meeting has not been

implemented.

Hearing on GPscourt case related to VAT on renewal fees is pending at the SupremeCourt.

Draft 3G/4G/LTE guideline

GP submitted response on the draft guidelines on23rd Sep12. First consultation meeting with MoPT held on 11thOct12. Govt. approach to resolve industry concerns on the guideline and regulatory condition

through dialog and consultation process appreciated by the telecom operators.

New SIM registration process

GP implemented new SIM registration and activation process for new connections from12thOct12 as per BTRC directives.


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Financial Overview


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Human Resource and Organization Division at Grameenphone

Administration is the one of the key factors in management. This division consists of the staff

managers who are responsible for the co-ordination and supervision of 778 employees of

Grameenphone. The division requires a high level of efficiency.

Staffing is one of the major functions of management. Selecting the right people to get the job

done is very important for the effectiveness and efficiency of an organization. The job is

performed by the Human Resource Department.

Human Resources Department

Human Resources (HR) Department plays a vital role in the total functioning of GP. It conducts

such activities as employee recruitment, selection, transfer, promotion, training, performance

appraisal. . The informal structure of HR according to its functions can be classified into three

main categories:

Human Resource Management (HRM) Human Resource Development (HRD) Human Resource management Information system (HR- MIS)Human Resource Management (HRM)

Manpower planning is an important function of HR management section. It performs two majoractivities:

1. Planning and forecasting the organizations short tern and long term human resourcerequirements.

2. Analyzing the jobs in the organization and determining skills and abilities that areneeded.

Human Resources Development (HRD)

While employee performance must be evaluated in economic terms of efficiency and

effectiveness, it can be best achieved through recognizing and enhancing the human dignity of

each employee. The quality of the human resources can be effectively increased through

education, training, and personal development.


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Human Resources Development functions aim to increase the quality of the human resources

especially through training.

GP training involves the following steps-

Assessing training needs Selection of the participants Conducting training programs.GP provides both local and overseas training on the basis of the need analysis of the employee.

HR Management Information System (HR-MIS)

HR-MIS carry out activities such as:

Maintenance & updating employee database Maintenance of employee related statistics Other activities requiring employee data updating.HRD must be a very efficient department, as it performs the functions of staffing in which

always has to gather and store current and exact data and information regarding the employees

and the organization. Different sub-departments have been identified and assigned according to

the nature of the functions of HR Department, but the job is accomplished co-operatively.

HRM Problems at Grameenphone

Over the years the human resource division and its operations were considered as staff

operations. But with the emergence of service industry the importance of knowledge workers

increased. These knowledge workers are considered as assets to organizations. So acquisition,

development and maintenance of knowledge workers in organizations became critical and to so

forth that human resource divisions importance increased. Even, these days some organization is

considering their HR division as line division.

In performing HR function Grameenphone Human Resource Department faces some problems

these are:


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At first they did not follow EEO (Equal Employment Opportunity) in Bangladesh andthey dont ask the female applicants to place in jobs traditionally held by men. But when

they tend to follow EEO rules they selected female employees for such position, in

performing such type of jobs their performance result was bellow than the rate.

Changing Management Team occurs problem for employees to adapt the newmanagement policy.

In recruiting employees from the external resources the orientation and training takelonger period of time

Management team shared with some major issues under the head of GP StrategyUpdate. In commercial discussion session Grameenphone former respected CPO

Haroon Bhatti shared with GP employees the New Increment Policy. Management

saw the reaction/question/expression of GP employee & how they challenged each &

every logic of the policy. (on 15, May, 2012)

The employees were very demotivated with the answers against their questions &depressed to see the logic behind the new policy & the unexpected behavior of their

respected CPO. For this new policy they got only 0% to 5 % as per the PMP rates of

individual employee but this year the inflation rate is almost 11%. If the average

increment rate is 3%, how will the employee of GP, fight against 11% inflation rate?

P&O Division, organizational restructure has been started & a good number ofemployees will not be able to secure their job.

Inhumanity is becoming a culture in Grameenphone where management is offering only atoken money to the employee which is very nominal figure to a person who is losing

his/her job. (on 4th June, 2012)

The employees of Grameenphone Ltd. are not satisfied with the HR policy as they arefully disclosed and neutrally practiced. The policys comprehensiveness and

implementation procedure are working as a moral support in this regard.


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HRM approaches need to be taken at Grameenphone to ensure ongoing Strategic

Competitive Advantage:

Background

Strengthening & transforming the organization to continue to win and deliver sustainablesuccess in revenue & growth

Live Grameenphone vision and values, to establish a transparent trustworthy and realcustomer centric organization

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Reinforce corporate Governance, give authority to the right level, simplify processes andeliminate slow bureaucracy.

Grameenphone believes in the continued improvement of corporategovernance. This in turn has led the Company to commit considerable

resources and implement internationally accepted Corporate Standards in its

day-to-day operations.

Being a public limited company, the Board of Directors of Grameenphonehave a pivotal role to play in meeting all stakeholders interests. The Board of

Directors and the Management Team of Grameenphone are committed to

maintaining effective Corporate Governance through a culture of

accountability, transparency, well-understood policies and procedures.

The Board of Directors and the Management Team also persevere to maintaincompliance of all laws of Bangladesh and all internally documented

regulations, policies and procedures.

Foster a performance based culture of inspiration, openness and trust1Grameenphone vision

We exist to help our customers get the full benefit of communications services in their daily lives. We want to make it easy for

customers to get what they want, when they want it. We're here to help

Grameenphone Values

1. Make It Easy

2. Keep Promises

3. Be Inspiring

4. Be Respectful


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Empower at every level, flatten the org & reduce hierarchy. Establish a new designation and title system accordingly Establish excellent leadership at every level Establish a transparent and performance driven reward and promotion system, adjust

benefit schemes, Grameenphone is a truly transparent company that operates at the

highest levels of integrity and accountability on a global standard.

To be desired destination for the best talents of this country and a company that inspirestalents to grow and develop, the greatest strength of Grameenphone is its "People".

Establish effective processes and structures in the organization according to best inclass KPIs (Key Performance Indicator)

There are some HRM Modern approaches which I think to be taken to ensure strategiccompetitive advantages at Grameenphone:

Human Resource Management System approach

This application captures Employee related function including self service process and payroll.

Advantages:

Organizational:

1. Saving materials and human resources2. Access to staff information from any place of the world

HR department:

Better visibility, control and tracking of human resource operations To help organizations better develop, manage, reward and retain their employees Identify HR risks and opportunities Assess and report on ongoing education, satisfaction and productivity Solution approach based on the global best practices

Employees:

1. Self service


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2. Streamlining HR processes3. Analysis & planning4. Establish control5. End To End tracking of HR services6. Proper decision making during performance considering employees skill and knowledge

Recruitment Approaches

The recruitment practice is done mainly on two standard procedure of recruitment. They usually

carry out in-house recruitment and/or post online job ad posting. They usually recruit fresh

graduates and allow them to grow in the company. Applications received are carefully filtered

and usually call a handful of candidates for the post. Recruiting approaches have some sort of

characteristics, they are:

Transparency Objectivity Countable procedure Established quantity, distribution of function of panel members Procedure for conflict of interest Multi target group- graduates, students

Goals:

Attraction of qualified staff Enhancement of the image of Ministry Increase of efficiency

New approaches:

Work with universities- database of students Work with students- information about the ministry Utilization of social network Other sources- local television, radio


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The Selection Process:

The selection process has two stepsfirstly there is a written test. Candidates are tested basically

on job related skills and their analytical ability along with some open ended questions relating to

their psychological behavior. Selected candidates are called up for an interview within a week.

The candidates must appear in front of an interview panel usually consisting of four members:

from the HR department as overseen by the MD, Chairman, General Manager and Admin

Managers. The candidates are tested for their basic knowledge about the subject matter,

their interpersonal and communication skills, and their abilities to work in a team environment.

Candidates after final selection are offered jobs along with the contract, which they need to

sign before joining the job.

Affective performance appraisal system

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 withan attitude of trust and fairness in the judgment of the superior.

In rating the overall performance, the Action Plan achievements will have 50% weightage.

The quality of performance in accomplishing the overall objectives of the job will havethe other 50%weightage.

The Appraiser will then pass on the form to his superior who, if necessary, will revertback or else send the form to the General Manager, Corporate Services at Head Office for

review by the Managing Director and consolidation.

It is to be borne in mind by the Appraise that the ability to judge his/her own performancefairy land dispassionately, both with regard to the Action Plan as well as the overall

performance, will be considered as a good managerial quality called objectivity.


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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.

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 Bonusthe Appraise will get and the level of Annual Incrementof basic salary

that will be applicable at the time of salary review in the following July. So in briefly

performance appraisal means the following:

Improvement of organizational and individual activity Comparison of expectations and goals between the manager and the employee (interview

for assessment)

Awarding successful employeesprofessional and career development, salary increase Managing less successful employees

Performance appraisal is another main function of HR Management. Personnel decisions

regarding the confirmation, increment, promotion, and transfer of an employee must be done in

fixed or variable intervals of time.

Performance appraisal is done through:

Job analysis Setting up performance standards Appraisal interviews.

GP performance appraisal takes place in two stages-

On completion of probation

On completion of one year of service.HR Management also deals with other personnel functions like leave management, show cause,

termination, Dismissal, discharge, and resignation. It also issues circulars as and when required

and conducts department inquiry among other functions.


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Manage critical human resources of the Organization

Availability of right resources favorable for the organization at the right time to achievecontemplated goals

Training for future critical positions Retention of successful employees Development substitute resources for the existing critical positions

Training and Development

Usually the first three months act as the probationary period for the fresh recruit. This also acts

as the training period for the employee. In these 3 months, the employee is usually not allowed to

work in any real life projects and based on the level of expertise they are induced to the real

life projects. In these 3 months, the employee is tested indirectly and monitored and his/her

caliber judged and hence the management takes the decision of where to place him.

Grameenphone Ltd arranges various training programs in job related subjects for the

development of its employees. This is usually arranged when the employee is not involved in any

active project. This helps to utilize the free time and also comes in the best interest of the

company and the employee. Grameenphone Ltd also encourages its employees to appear

invidious professional certification exams, which the company also pays for. The talent sourcing

activities begin with effective human resource planning. This planning is aligned with the

business need forecast, overall organizational growth matrix, structure and direction and is done

in yearly basis. R& EB (The Resourcing & employee branding) department coordinates and

evaluates people planning process that eventually approved by board considering the factors:

Potential/ expected workload and expertise requirements.

Optimum and effective utilization of the HRM for the entire company, both current andfuture requirements.

Possibilities for greater efficiency through reorganization and automation (use of tools&facilities) and making necessary adjustment.

Employee turnover/employee mobility.


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New business initiatives and projects that require new competence and additionalresources.

Government legislation Human resources planning, budgeting and necessary approvalsshould be taken in the beginning of the year to ensure timely co-ordination and

implementation.

Another issue is the job advancement commonly known Roadmap in Grameenphone. Due to

poor performance appraisal by many supervisors some potential employees are falling out. As a

result, many others are feeling insecure since management is not taking long term decision. As a

result training programs are not getting much attention from the employees

Four stages of career development

Assessment-Annual performance appraisal Analysis-Gap analysis of the required skills for the positions to be occupied and existing

ones

Development-Developing human resources for higher position Monitoring-Development of leaders

Employee benefits

The company maintains both defined contribution plan and defined benefit plan for its eligible

permanent employees.

a) Defined contribution plan (provident fund)The company contributes 10% of basic salary of all eligible employees to a provident fund

(defined contribution plan) constituted under an irrevocable trust, while the employees also

contribute an equal amount to the fund as per the rules of the trust deed.

The company recognizes contribution to defined contribution plan as an expense when an

employee has rendered services in exchange for such contribution. The legal and constructive

obligation is limited to the amount it agrees to contribute to the fund.

b) Defined benefit plan (gratuity)The company provides retirement benefit in the form of gratuity payments determined by

reference to employees' earnings and years of service to each eligible employee at the time of


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retirement/separation. Gratuity obligation at the reporting date is measured on the basis of best

estimate of the company from prior experience in its parent company.

c) Short-term employee benefitsShort-term employee benefits include salary, bonuses, leave encashment. Obligations for such

benefits are measured on an undiscounted basis and are expensed as the related service is

provided.

The 8 Organizational Development Initiatives

1. Organizational Structure and Efficiency

2. Aligning GP Governance Model

3. Going Paperless

4. Fortify Codes of Conducts in GP

5. Compensation and Benefits

6. Performance Management

7. Strengthening GPs leadership capabilities

8. CHQA new way of working in GP (A new way of work e.g. using CHQ as a tool

for transformation: moving mindset from Me & Mine to We& Ours, Self

Management and Knowledge Sharing)

Key Deliverables

Flatter organizational design, guiding principles, levels, span of control, decision-makingprinciples

Leadership and expertise roles in the organization New Governance Model and authority matrix as per new organizational design Reengineer processes that generates maximum hard copy and implement document

management system and Enterprise achieving center

E-learning modules Ongikaar on ethical dilemma, Codes of Conduct overview forCXOs and leaders

Compliance training for all and re-signing Codes of Conduct and introduce register ofemployees and family members business interest with GP


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Simplify Compensation and Benefits System Job Evaluation and Role Matrix Introduce new & efficient performance management Leadership development plans based on the project deliverables, train & prepare the

Leaders to uphold the GP Way spirit

Moving in CHQA new way of work e.g. using CHQ as a tool for transformation:moving mindset from Me & Mine to We & Ours, Self Management and Knowledge

Sharing

HRM challenges in the 21stcentury at Grameenphone

For HR professionals, the new century will take up where the old one left off - with the struggle

to recruit and retain a trained, satisfied workforce.

Companies should be prepared to handle downsizing, even in today's tight labor market. HR

should be prepared to handle the challenge of taking care of those people, because it says

something about the organization to the people who stay. A lot of time HR has to be the one to

stand up for the people in the face of the entire cost cutting, says Grameenphone HR officials.

Either Grameenphone can follow their current processes of recruitment, selection or they can

apply some new techniques to foster their total effort. Currently they are doing fine with their

own methods of recruitment and selection. If they want to follow a new method, they need to go

to a research process for some period. The HR division need to restructure or diverse their

current policies regarding appraisal system, performance evaluation and career development

which is directly linked with training programs. Otherwise employees will always feel

motiveless and insecure.

THE GP WAYis how we do business its all about internalizing and reinforcing

Grameenphone vision & values, leadership expectations, codes of conduct and governing

principles in Grameenphone daily life at work and deliver upon Grameenphone brand promise

Stay Close.


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This is a comprehensive transformation Program to develop a customer-centric Organization and

Culture in Grameenphone.

In the GP Way we will enhance the capability of the people and organization we have inGrameenphone. In this way we will ensure sustainable success in the market place

continuing to be the #1 player in Bangladesh for now and for years to come.

To actualize the GP Way and to give tangible experience to our internal & externalcustomers, we have the following prioritized initiatives:

o Customer First Program: To establish a truly customer centric company andimprove every customer service point

o Organizational Development Program: To further improve our culture,structures, systems and procedures

o Communication & Involvement Plan: To support the GP Way initiatives withcomprehensive plan

The internal and external challenges are:

The HR policies and strategies are comprehensive not much enough to manage theworkforce of the company. The policies are not well defined and widely explained to

ensure an all encompassing HR management. The HR policies and strategies are not disclosed to the full among the employees and

management body for better understanding and practice. The employees have not

sufficient access to them in case of any need felt

The HR manual of the company is practiced in full and without any bias and deviationbut here is some deviation. The policies are not helping the company to get a better

managed working environment.

The employees of Grameenphone Ltd. are not satisfied with the HR policy as they arefully disclosed and neutrally practiced. The policys comprehensiveness and

implementation procedure are working as a moral support in this regard.

The HR policies and strategies are not conforming the ILO standards for the employees.The policy also not follows the rules and regulations of the Ministry of Labor and Human

Resource of the Govt. of Bangladesh. For example: Inhumanity is becoming a culture in


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Grameenphone where management is offering only a token money to the employee

which is very nominal figure to a person who is losing his/her job.

But Grameenphone HR and People Management ensure to their employee that they donot cut off salary, cost cutting or sacked any employee till December, 2013 which is a big

challenge in 2012-2013.

Recommendations

Introduction of an Employee Welfare Association

In many cases, the need for an employee welfare association is felt. This association can take

different constructive efforts for the welfare and benefits of the employees in an organized way.

Despite continuous criticism for the Labor Unions for their misleader activities, the need of thiskind of association still remains indispensable.

Creation of an Employee Welfare Fund

An employee welfare fund can be created from the contribution of the employees and donations

from the owners and outside sources. This fund would be very handful in time of any emergency

of the workers. Such fund can be centrally managed for fair practice.

Training and Development issue

More intensive training program should be introduced to increase the employee performance to

the optimum level. The HR policy could include certain provisions regarding to a reutilized and

modern training.

HR counseling cell

An HR counseling cell can be established by the HRD to provide counseling and information to

the employees regarding to HR issues. This will certainly increase the motivation and confidence

level of the employees.


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Continuous modernization and revision

Modernization and revision of the HR policies and strategies are indispensable for any

organization as the world is getting more diversified day by day. The HRD of Grameenphone ltd.

should continuously monitor the changes happening around and adjust the policies to match the

changed scenario.

Recruitment and selection

Although Grameenphone uses both the discrete and comprehensive method of selection, they

may change their policy and try to adopt some new methods. Some of the preferred methods of

selection are discussed below:

Talent hunt programs: Grameenphone can launch talent hunt programs in reputeduniversities of our country and sort out potential candidates from there. This method will

help GP to increase its bondage with people and to find suitable candidate for their

organization. This type program can be done quarterly or bi-monthly basis depending on

work force requirement.

Job fair is another type of talent hunt program. Grameenphone can arrange job fairannually or semiannually basis and can select suitable candidates from the event. This

type of event can also be arranged in separate parts of Bangladesh. Since Grameenphone

has monthly program likeGrahok Kotha

andPothe Pothe

, they can easily organizethis type of event throughout the year.

Outsourcing: Grameenphone can also apply outsourcing method for selection purpose.For this, the company can hire a third party to promote their organization and select

candidates for them. Grameenphone will have to pay little attention on this effort as all

the responsibilities lies with the given outsourcing firm.

Training

Training programs not always deliver the ultimate solution to the employees. Most of the

employees at call centre feel that their work is monotonous and they have less to contribute for

the organization. Many think that they are not getting proper training as they wanted. Sometimes

they are feeling frustrated and humiliated due to certain factors. However they are conveying

these issues to their respective supervisors.


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For technical training the current feedback and evaluation system is working well. Since, it is

focusing technical aspect the follow-up can be drawn easily from employees. On the other hand,

non technical trainings are not always provided as per employees need. It is found that many

employees are not asking a particular training and they are receiving a different one. Sometimes

their supervisors are not acting wisely. So, it is not the employees who should be blamed for

their lacking. We believe that management needs to sort these errors for the betterment of the

organization.

Another issue is the job advancement commonly known Roadmap in Grameenphone. Due to

poor performance appraisal by many supervisors some potential employees are falling out. As a

result, many others are feeling insecure since management is not taking long term decision. As a

result training programs are not getting much attention from the employees.

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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