Mgt 351 Report

MGT 351

HUMAN RESOURSE MANAGEMENTA COMPARATIVE ANALYSIS BETWEEN GRAMEENPHONE & AIRTEL

PRESENTED TO MR. SHADAT KHAN Section-14 Submitted on -23rd December 2011

PREPARED BY SYED NABIL RAIYAN PROTIK CHOWDHURY NAFEES IMTIAZ SUBRATA RUDRA Md. SAUD SAIF PAVEL

1010669530 1010596030 1020009030 1010681030 1010192030

MGT 351

HUMAN RESOURSE MANAGEMENT

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Letter of TransmittalDEC 23, 2011

Shadat Khan (Stn) Faculty School Of Business North South University Plot # 15, Bashundhara, Dhaka-1229

Sub: Submission of group project. Dear Sir, We are pleased to submit here our group report entitled A COMPARATIVE ANALYSIS BETWEEN GRAMEENPHONE & AIRTEL as requirements for partial fulfillment of the course MGT 351.This report is a summary of our findings from two telecommunication organizations in Bangladesh, namely, GRAMEENPHONE and AIRTEL. We hope it will enhance our future critical thinking about various HR practices and establish a theoretical & practical baseline regarding the course. If you have any questions or queries regarding the contents of the project; we would be grateful to receive your advice. Thank you for giving us the opportunity to have a practical knowledge about the organizations which follow various modern HUMAN RESOURSE concepts. We are looking forward to work under your honorable supervision in our future courses. Thanking you, Sincerely, Syed Nabil Raiyan 1010 669 530 Protik Chowdhury 1010 596 030 Nafees Imtiaz 1020 009 030 Subrata Rudra 1010 681 030 Md. Saud Saif Pavel 1010 192 030Page | 3


AcknowledgementAll praise to Allah, the most gracious and the most merciful. Without His blessing and endorsement this report would not have been accomplished. We are very much thankful for the guidance, assistance & co operation of many helpful people on the preparation of this report. We are especially grateful to our faculty Shadat Khan, MGT 351, for sharing his valuable knowledge and expertise throughout the course which enabled us in producing such successful assignment within a short period of time. Our groups combined effort, the lectures, our class notes & the proper guidance & instructions from our respected sir guided us towards the successful fulfillment of the group research project.

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Contents

EXECUTIVE SUMMARY Grameenphone Vs. Airtel (an HR porspective) Job Analysis Human Resource Planning Recruiting and Selecting Training and Development Compensation Performance Apprasial Recommendation Conclusion

06 07 07 08 10 12 13 15 17 19

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EXECUTIVE SUMMARYThis report manly focused on theoretical & conceptual analysis about the relevant Human Resource concepts of two firms in the telecom industries of Bangladesh, namely GrameenPhone & Airtel. We tried our level best to ensure the purity & objectivity of the project. All the relevant theoretical frameworks, critical analysis, application of knowledge & practice base evidence are providing throughout the whole project report. The whole report is divided into several segmented topic headings & when required we use appropriate talking headings. By browsing through the comprehensive index & the table of contents one can get the clear idea about the research project. Grameenphone widely known as GP, is the leading telecommunications service provider in Bangladesh. With more than 32 million subscribers (as of June 2011), Grameenphone is the largest cellular operator in the country. It is a joint venture enterprise. Grameenphone was the first company to introduce GSM technology in Bangladesh. It also established the first 24hour Call Center to support its subscribers. With the slogan Stay Close, stated goal of Grameenphone is to provide affordable telephony to the entire population of Bangladesh. Airtel: In January 2010, Bharti Airtel Limited, Asias leading integrated telecom services provider, acquired 70% stake in Warid Telecom, Bangladesh, a subsidiary of the UAE-based Abu Dhabi Group. Bharti Airtel is making a fresh investment of USD 300 million to rapidly expand the operations of Warid Telecom and have management and board control of the company. This is the largest investment in Bangladesh by an Indian company. Dhabi Group continues as a strategic partner retaining 30% shareholding and has its nominees on the Board of the Company. The new funding is being utilised for expansion of the network, both for coverage and capacity, and introduction of innovative products and services. The company crossed the 1 million customers mark within six months of launch on the back of innovative offerings as well as rapid expansion of network coverage and distribution.Page | 6


Grameenphone Vs Airtel (an HR perspective)The significant differences & analytical comparison between the two companys human resource management : A brief discussion about 6 organizational characteristics differences:From our observation of the two companys human resource management, we find some phenomenal differences in their organizational management procedure as well as the organizational cultures. Below some of the key points are discussed:

i) Job Analysis:GRAMEENPHONE In Grameenphone, every management job is to have a stated purpose and a list of major responsibilities. These should be clearly described and agreed between the incumbent and the superior. The job is to be graded according to its nature and the level of responsibility it carries. Whenever any significant change in the nature of responsibility takes places, the Job Description and specification should be amended accordingly. In December every year the Job Description and job specification of all management position in the Company is to be reviewed and updated at the time when Action Plan meeting is held. In case the job content of any position is found to have changed significantly, a job analysis exercise is to be undertaken with the help of HR Department, Head Office. It is important that the incumbent is given full opportunity to participate freely in the preparation and periodic revision of the Job Description. His/Her perception and understanding of what is expected of him/her as the incumbent is most crucial for his/her success in the job.

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The Job Analysis and Job design is prepared before the recruitment is done. The contract signed before joining states the job description of the post the employee is joining. By setting the job description clarifies the tasks he needs to carry on and benefits both the company and the employee himself. .

ii) Human Resource planning :GRAMEENPHONE Grameenphone provides ample opportunities to grow. Promotion is based both on seniority and performance. The performance of each employee is reviewed every 6 months and the employees worth in the company depends on that. The employees designation in the first two years is completely time dependant. However, the employees at the same level can be paid more or less depending on his performance. After the initial two years, the growth of the employee in the company is mostly dependant on his performance. Grameenphone Ltd believes in performance rather than age. People with potential should be at the top rather than being stuck at the bottom because of the lack of seniority. Grameenphone Ltd thinks it is both fair and good for the company as a whole. 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 utilise the free time and also comes in the best interest of the company and the employee. Grameenphone Ltd also encourages its employees to appear in various 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:-

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y y

Potential/ expected workload and expertise requirements. Optimum and effective utilization of the HRM for the entire company, both current and future requirements.

y

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

y y

Employee turnover/employee mobility. New business initiatives and project s that require new competence and additional resources.

y

Government legislation

Human resources planning, budgeting and necessary approvals should be taken in the beginning of the year to ensure timely co-ordination and implementation. AIRTEL In Airtel, There is no specific number of per year vacancies. It depends upon the number of employees needed per year. The company plans and hires the employees itself. It does take the services from any other recruitment firm. The company forecast the demand for labor every year. During forecasting they include measures of the economy, actions of competitors, and change in technology and trends in the composition of labor force. Moreover they also conduct an analysis that how many peoples are currently working on different jobs have relevant skills according to their jobs. Airtel has long term goals. They set our goals by making the analysis of labor supply and demand. They also focus on our product and try to improve it with the passage of time It is also a result of our Long Term goal. The company did not downsize their employees; they hire workers on both temporary and permanent basis. Mostly workers are hired on Permanent basis. Some workers are hired temporary but based upon their work, after some time they are also appointed as permanent workers. The two main sources by which the company recruits the Human Resource are given below:Page | 9


Internal Source: In this source any one employee, within the company who will be able to done the high post job, is selected. The information about the post or vacancy is pasted on bulletin boards; on co-operate intranets and anywhere else. This source is used less. External Source: In this source the advertisement is published in newspapers. Candidates are selected from applicants by conducting interviews. In this case people also use some references to gain the jobs. This source is used more. Moreover they also publish the vacancies also on internet. So the peoples apply from internet are called for interviews and for further process. If the company made its franchise on any rural area, then company prefer to hire the person from that area because it is easy for customers to communicate. Line Managers and Human Resource Managers conduct interviews from the candidates. But if there is an interview for some special posts like General Managers etc, then Board of Directors and Chief Executive Officers conduct interviews. The company conducts all types of interviews like structured, situational, behavior description, and panel interview. In most of the cases, there are panel interviews. The selected candidates are informed by both e-mail and postal services.

iii) Recruiting and Selection:Grameenphone In Grameenphone, 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. The selection process has two steps firstly 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 behaviour. 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:Page | 10


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. AIRTEL In Airtel, like every multinational company, it has also a specialized procedure for selecting the employees. The selection process is described as follows: Requisition raised by concern department. HR Department processes this requisition. Publish the advertisement in the newspapers. Screening the application forms and resumes. Interviewing Candidates. Checking References. Select the person. They select the employees on the basis of work experience and knowledge. Good results are also matters but knowledge is very essential for concerned job. In selecting the company conducts tests for clerical jobs. There are some engineering tests, communication skills tests, computer knowledge tests and many more based upon the vacancy. Line Managers and Human Resource Managers conduct interviews from the candidates. But if there is an interview for some special posts like General Managers etc, then Board of Directors and Chief Executive Officers conduct interviews. The company conducts all types of interviews like structured, situational, behavior description, and panel interview. In most of the cases, there are panel interviews. The selected candidates are informed by both e-mail and postal services.

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iv) Training and Development:GRAMEENPHONE Grameenphone, 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 calibre judged and hence the management takes the decision of where to place him. AIRTEL In Airtel, they believe that it is necessary for individual employees or groups of employees to take job related training courses that enhance their values to the company, keep them up to date on the latest trends, technologies and knowledge, offering a great chance to interact with peers. Training need is identified through gap analysis, performance appraisal, profile assessment or one on one meeting. Training is considered as a learning intervention used for the personal as well as professional development of Airtel employees. The employees are given in house trainings and they also sent for trainings from well reputed and specialized training institutes both within and outside of Pakistan. After providing training, there is a training evaluation form. Due to this form the company realized that how much a person is trained. There are two types of trainings given to the employees. The types and their durations are given below: For Local Trainings (maximum 1 weeks) For Foreign Trainings (maximum 2-4 weeks) In Airtel, they use all training methods e.g. Audio/Visual, Practical, workshop, presentations, hands-on etc.

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v) 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. GRAMEENPHONE In Grameenphone, 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 the 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. The employee's performance appraisal will be made as usual. Based on the appraisal, performance Bonus will be payable as usual. 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.

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AIRTEL In Airtel the compensation system is somewhat the same as GP. The company is incurring the expense of the compensation depending on the benefit they receive from the job done by the employee. The employee with very high performance appraisal will receive a performance bonus for that year and if he/she does not get the same appraisal next year then he/she will not receive the bonus. The company also has good compensations packages for its high officials, including raise in the salary and additional allowances and many other facilities.They also have some other compensation packages which are described more later on in the paper. Festival Bonus: There will be disbursement of an amount equal to one months 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 festival bonuses are similar in both Grameenphone and Airtel 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 both 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. These Festival Bonus will be disbursed in cash and will be paid two weeks prior to the festival date.

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vi) Performance Appraisal : GRAMEENPHONE V.S AIRTELGRAMEENPHONEy This reward system does not have any fixed criteria. This is basically an

AIRTEL yRewards giving for excellent performance: Airtel giving rewards to the subordinates for their excellent performance. They give rewards to the employees to improve their service quality.

additional reward system, which provides financial incentives to employees for extraordinary performance in any area of their job.

y

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.

y

Performance bonuses are given on the basis of performance in a given year.

y

360 degree Appraisal system. It is a systematic collection and feedback of performance on an individual or group, derived from a number of stakeholders. Data collected is fed back to the participant in a clear way design to promote understanding, acceptance and ultimately behavior.

y

Grameenphone Ltd bears the expense of one tour/picnic The per year for covers each all

y

Airtel provides employees Pick and drop service facilities this is an external benefit of the employees.

employee.

company

transport, hotel and food expenses. This usually refreshes the employees a lot and makes room for them to interact and know each other better.

y

Profit Sharing:The most significant employee benefit

y

Techniques at Airtel.

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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.

Essay technique:Appraiser records overall imopression about employee: strengths, weakness, promotability, development needs. y Critical Incident Tenchnique: Maintain daily log of what the employee does. Susceptible to favoritism y Forced Distribution Ranking: Relative rankings of employees with each other. Employees allotted to certain performance category. Difficult justification

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RecommendationGrameenphoney 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 misleaded activities, the need of this kind of association still remains indispensable.

y

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.

y

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 routinized and modern training. y 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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AIRTELWith some changes at higher level including advisor to CEO, G.M Marketing much has improved this year in Airtel market rating. Airtel certainly has potential to capture good market and to give tough time to the competitors, but for this at least following steps should be taken

y

Airtel is offering cheap rates for its prepaid and postpaid customers as Compared to its competitors but the main area they are lacking is the way to communicate it to customers.

y y

Network should be enhanced to much more cities. There should be consistency of brand ambassadors, jingles, colors and graphics in their print and electronic media ads to create strong brand recognition.

y

More regional departmentalization should be there, so as to create strong presence and market analysis at regional levels.

y y

More staff to should be hired in some departments to meet the requirements. There should be more decentralization and employees should be encouraged for their ideas.

y

Compensation and benefits plans should be revised, as it can be used as a very important tool to create motivation in employees.

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CONCLUSIONBy comparing & analyzing the two companys organizational behaviour we find some significant similarities & differences, though we put emphasis on the differences & the analytical comparison. From our research outcome we can say that Grameenphone is more dynamic, flexible, versatile, in their work process. Both the companies are modern & follow international standards, but Airtel is not as equal to Grameenphone when it comes to employee loyalty and benefits. But Airtel is relatively new and has more to offer for its customers regarding low costs and benefits which tell us that the company will grow more in the future and as a result it will offer more benefits to its employees and GP will also competitively offer its employees more benefits to keep the employee loyalty going on.

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Mgt 351 Report