NORTH SOUTH UNIVERSITY

Project on Grameenphpone Ltd.

Submitted To:

Tawfiq Mostofa

Lecturer of School of Business

North South University

Course: MGT 210

Section: 21

Date of Submission: 08/08/2012

Submitted By

PriodorshineSarker 1120081030

Md Al-Rafa 1120095030

Khushnoor Jahan 0920130520

Naeem 1130512030

Nazemul Islam Ratul

1

LETTER OF TRANSMITTAL

8th

August 2012

TawfiqMostofa

Lecturer

Department of Business Administration

North South University.

Submission of a Report on:Analyzing Grameenphone Limited from the management

perspective.

Dear Sir,

This is our pleasure to accomplish the Project Work (MGT210) and submit the report on

“Grameenphone limited”. We have prepared the report on the basis of the study from

management perspective of Grameenphone limited.

This report is prepared on the basis of both primary and secondary data. Primary data was

collected by questioning the concerned manager of the company during the period of the

working hour; while secondary data was collected from various printed documents like

annual report etc. of the company. Although the main purpose of the report is to provide an

insight from management perspective of Grameenphone limited, a leading

telecommunication company in Bangladesh. We would like to express our gratitude to you

for your valuable effort for us which provided the opportunity to complete this project.

Thank you

Yours Sincerely,

Priodorshine Sarker

Md.Al Rafa

Naeem

Khushnoorjahan

Ratul

2

Acknowledgement

We would like to acknowledge to our honorable course lecturer, Tawfiq Mostofa,

faculty of School of Business of North South Universityfor giving us the opportunity to

complete this project. His valuable suggestion, successful guidelines and helpful advice

throughout the project work smooth the completion of this project. A special thanks to the

Grameenphone‟s manager for his guidance, insight and encouragement in the writing and

completion of this report. His valuable support and patience throughout this journey has been

remarkable and is appreciated from the bottom of our heart.At last once again we like to

praise those persons whoever comprehends this project with the name of Almighty.

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.

In this report, we have analyzed Grameenphone Limited from the management perspective.

Mainly we have tried our best to present the true scenario of management practices of

Grameenphone.

3

Background

Grameenphone is the largest telecommunications service provider in Bangladesh. They

received their operating license on November 1996 and started their operation on March 26,

1997, the Independence Day of Bangladesh. Now, after 15 years of operation, it has around

30 million subscribers.

Vision

We exist to help our customers get the full benefit of communications services in their daily

lives. We‟re here to help.

Mission

Grameenphone is the only reliable means of communication that brings the people of

Bangladesh close to their loved ones and important things in their lives through unparalleled

network, relevant innovations & services.

Values

MAKE IT EASY

Everything we produce should be easy to understand and use. We should always remember

that we try to make customers‟ lives easier.

KEEP PROMISES

Everything we do should work perfectly. If it doesn‟t, we‟re there to put things right.

We‟re about delivery, not over-promising. We‟re about actions, not words.

BE INSPIRING

We are creative. We bring energy and imagination to our work. Everything we produce

should look fresh and modern.

4

BE RESPECTFUL

We acknowledge and respect local cultures. We want to be a part of local communities

wherever we operate. We want to help customers with their specific needs in a way that suits

way of their life best.

STRENGTHS

Market Leader:

Grameenphone is the first organization in Bangladesh, which has reached to the general

people. Though Citycell had started their operation beforehand, but they were unable to reach

the general people. So, the people are being used to with Grameenphone. This is a huge

advantage of Grameenphone.

Network Availability:

Grameenphone has the widest network coverage and a large number of BTS station (Tower)

all over Bangladesh. That‟s why the company can provide better connectivity in most of the

area of the country.

WEAKNESSES

Cultural Gap:

In Grameenphone management, employees from different countries are present. Suppose,

CEO is a Norwegian, Chief Technical Officer is Indian and many more employees come

from different countries. That‟s why sometimes there maybe lack of understanding due to

cultural gap.

Problem Contained Offers:

Recently almost all of the new offers of Grameenphone are having some technical problems.

Either they are not working at all or part of the services of those offers is disabled. Moreover,

Grameenphone is also delaying to solve these problems which are only raising the

dissatisfaction level of its subscribers.

5

OPPORTUNITIES

Economic Growth of Bangladesh:

The economic growth of the country will increase the expansion of telecommunication

industry. From 1995 to 2006, there is a huge change in telecommunication sector.

Declining Costs and Prices of Handsets:

Few years ago the people from low income group could not afford mobile phone services due

to the high price of handsets. Now the price of handsets has decreased and the low income

people want to get connected through mobile phone.

THREATS

Upgraded Technology Used by Competitors:

New mobile phone operators like Banglalink, Airtel are establishing their channels with latest

technology, whereas Grameen Phone is using the stations which are five years old. So, this is

one of the disadvantages for Grameenphone.

Political Instability:

Political instability is another threat. With the change of Government, policies are also

changed. So, this is difficult for any multinational organization to cope with new policies.

The Manager

Name: Mr. Showkat Shopon

Education: Master‟s in Government Politics

Role: Middle level manager of External Board of Communication Service (Public Relation)

Environmental Impacts on Grameenphone

Government Regulations

Stakeholders

Telecom Regulators

Banks

6

Shareholders

Media

Corporate Social Responsibility

Health

Safe Motherhood and Infant Care Project

In partnership with Pathfinder International and USAID, Grameenphone has been supporting

the “Safe Motherhood and Infant Care” program since May 2007. Under the program, free

comprehensive primary healthcare services are provided to economically disadvantage

pregnant mothers and infants through 320 Smiling

Sun clinics located in 61 districts around the country. From inception up to November 2010,

1,765,088 services have been provided to the economically disadvantaged mothers and

infants under this program. Four clinic-on-wheels and ten ambulances were handed over to

different NGOs of Smiling Sun Network, to increase the accessibility of maternal and infant

healthcare services to the hard-to-reach economically disadvantaged population as well as to

facilitate home delivery by skilled birth attendants. Under the project, 15,976 deliveries had

been conducted by skilled professionals.

Free Eye Care Camps

Grameenphone, jointly with Sightsavers International, organized free Eye Camps to ensure

eye-care services since 2007. In total, 24 such free eye-camps have been organized

throughout the country and a total of 36,327 patients were given free eye care support, among

them 4,743 patients were administered Intra Ocular lens or cataract surgeries.

Education

Grameen Shikhkha

In collaboration with Grameen Shikhkha, an organization of Grameen Bank Family,

Grameenphone provides scholarship to meritorious but underprivileged students through a

scholarship fund at different academic levels. Alokdeep, Non-Formal Primary School cum

Cyclone Shelter Grameenphone, as part of its rehabilitation plans in the SIDR affected areas,

provided financial assistance to build four education center-cum-cyclone shelters in the

southern belt of the country. These cyclone shelters are used as non-formal primary school

7

throughout the year to provide non-formal primary education to underprivileged children of

the locality.

PROBLEMS FACED AND DECISIONS MADE BY THE MANAGER

PR managers faces both types of problems: Structured problems and unstructured problems

and takes Programmed decisions and non-programmed decisions respectively.Example of

Structured problem:when a customer complains about the service, then that complaint is

immediately noted to the service department to solve the problem.Example of Unstructured

problem:if the company wants to launch a new product then the PR managers decide how to

launch the product,with whom they should communicate.Since advertising is too

complicated, daunting and expensive.they will go for Radio,Cable,Magazines,or Newspapers

.Which stations and which newspapers? How often, what size, what message?

Who will create the ads and monitor their effectiveness?These are some common decisions

that the PR managers take.

8

SPAN OF CONTROL

GP do not have span of control.It has mainly 5 managerial bands:A,B,C,D and E.

Band A:CEO

Band B:CSO

Band C:Senior Mangers

Band D:Managers

Band E:Executives

Band E can report to Band D managers or they can directly report to senior managers and

above.Band D managers can report to Band C or CSO or CEO.

GP has a flexible managerial structure.

Strategic Plan:

The official slogan of Grameenphone is „Stay Close‟. The organization wants that consumer

can stay close with their friends and family along with GP. So GP always come with such

service that is convenient for their consumer.

Operational Pan:

9

Public Relation Department of GP is try to solve customer complain as well as make relation

with other organization. PR department hear customer demand and recommend top managers

according to their demand. By all the work PR department tries to ensure that GP is

achieving their goal.

Single use Plan:

For better customer service GP organizing them as more flat and flexible organization. GP

even ensuring that their employees can „stay close‟ with each other. So, GP changing

organization structure as more flat and flexible.

Directional Plan:

As telecommunication‟s environment is very dynamic so GP most cases believe in directional

plan. GP has belief of their employees‟ potentiality also. So at a meeting top management

gives target as well as some direction. But employee get enough room to use their talent in

own way.

Standing Plan:

GP uses standing plan mostly in Customer Care Department. Call Center employees deal

with customer in same way and with same answer for general enquiries. Similarly GP

Customer Care Center employees follow a standard procedure to meet customer complain

demand.

10

Decision Making System:

As GP is a flat organization so its decision making process is decentralized. GP design its

organization structure such a way that employees can stay close each other. For doing this

they follow a unique style. That is no one has his/her own room regardless of top manager or

first-line manager. So lower level managers actually get a huge chance to communicate with

their superior and share their views. That‟s way most decisions are discussed with lower

level managers before implementation.

Growth Strategy:

Primary product line of Grameenphone is telecommunication. It concentrates its growth on

telecommunication only. From very beginning of its journey GP concentrates to expanded its

market by expanding network coverage. Now it reaches almost whole Bangladesh with its

network coverage. As well as GP come with new service and product ranging from

international roaming, GP sets, GP internet etc to hold its number 1 position.

Financial controls

11

The internal control over financial reporting of Grameenphone includes Company Level

Control (CLC)along with General Computer Control(GCC) to ascertain operation efficacy,

consistent and dependable financial reporting. After being a listed company in the country‟s

Stock Exchanges, this internal control over financial situation has become more crucial.

Partnering among Board of Directors, management and employees of the company has made

continuous success story of pursuing Sarbanes Oxley Act in GP since 2006. The outcome of

the effort is award winning and true fair.Grameenphone conducts quarterly financial review

and this provides an analysis of the current economic and financial situation of the

company.In addition, internal financial review on monthly financial results is conducted by

CEO and CFO on a monthly basis.

Information system controls

Grameenphone controls its management information system (MIS) through intranet which is

a computer network that usesinternet protocol technology to share information and operate its

information system within the organization. By using internal website, Grameenphone

monitors the organization's information technology infrastructure and multiple networks of

their operating services. Their objective is to organize and control each individual's desktop

with minimal cost, time and effort to be more productive, cost efficient, up to date with

current information.

Corporate Governance

Corporate governance is well-built in GP. Grameenphone believes in the continued

improvement of corporate governance. This in turn has led the company to commit

considerable resources and implement internationally accepted corporate standards in its day-

to-day operations. Corporate governance is reached to even greater height in terms of sound

internal control pursuits within the organization. Being a public limited company, the Board

of Directors of Grameenphone have a pivotal role to play in meeting all stakeholders‟

12

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 maintain compliance of all laws of

Bangladesh and all internally documented regulations, policies and procedures.

In the fast-paced world of telecommunications, Grameenphone is a truly transparent company

that operates dynamic corporate governance practices at the highest levels of integrity and

accountability on a global standard.

Human Resource management of Grameenphone

Hu ma n R es ou rc e P l a nn in g :

Grameenphone looks into the possible shortcoming in the way human resource policies that

are conducted at Grameenphone Ltd and appropriate planning‟s are provided for

improvement. 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 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

and future requirements.

13

Possibilities for greater efficiency through reorganization and automation (use of tools

&facilities) and making necessary adjustment.

Employee turnover/employee mobility.

New business initiatives and project s that require new competence and additional

resources.

Government legislation Human resource planning, budgeting and necessary approvals

should be taken in the beginning of the year to ensure timely co-ordination and

implementation.

Recruitment process in Grameenphone:

The recruitment practice of Grameenphone is done mainly on two standard procedure of

recruitment. They usually carry out in-house recruitment and post online job ad posting.

There are two channels to apply online: Through Direct E-mail to Human Resource Division

at recruitment@grameenphone.com and through online iRecruitment Account.

Grameenphone places job advertisements on various media and sources aligned with the

needs and requirements of the position. Some of these sources include but are not limited to:

Online career site

Telenor global career site

Newspaper advertisements

On-campus

Social Media

Head hunting agencies

They usually recruit fresh graduates and allow them to grow in the company. Applications

received are carefully filtered and then they call the suitable candidates for the selection

process.Grameenphone hires the best "fit". Along with specific job-related competences,

experience (as applicable) and other skills, they look for a person who would fit

Grameenphone‟s vision, values, and leadership expectations. In other words, they not only

hire skills but also the employee as a person.

14

Selection of Employees in Grameenphone:

There are five stages of employee selection in Grameen phone. These are as follows:

1. Preliminary Sorting

Candidates are first selected based on- academic result, work experience and specific position

requirements.

2. Written Test

After preliminary sorting selected candidates are called for the written test. In the written

examination, candidates are tested basically on job related skills and their analytical ability.

3. Interview

The candidates who are selected based on the written examination are called for the

interview. 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 specific

requirements, their interpersonal and communication skills, and their abilities to work in a

team environment.

15

4. Medical Test

Grameenphone checks pre-employment medical tests too sure about candidate‟s fitness for

duty.

5. Final Selection & Posting

After all the previous process ends and references are checked, candidates are offered jobs

along with the contract, which they need to sign before joining the job. This is how successful

candidates got selected in Grameenphone.

Training & Development

In Grameenphone, usually the first three months act as the probationary period for the fresh

recruits. This also acts as the training period for the employees. In these 3 months, the

employees are usually induced to the real life projects based on the level of their expertise.

During these 3 months, the employees are 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. Grameenphone

Ltd provides ample opportunities growth for their employees by providing international

training facilities.

16

Performance Appraisal

In Grameenphone, 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 Appraise and the action plan along with the criterion of assessment is

clearly agreed between them, appraisal should be a relatively easy task. In Grameenphone,

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. Promotion is based both on

seniority and performance. The performance of each employee is reviewed every 6 months

and the employee‟s worth in the company depends on that. The employee‟s designation in the

first two years is completely time dependent. However, the employees at the same level can

be paid more or less depending on his performance. Grameenphone Ltd believes

in performance rather than age and 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.

Compensation

Grameenphone provides compensation to the employees:

17

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. Grameenphone provides some rewards that include:

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 Bonus:

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.

Festival Bonus:

Grameenphone 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

Types of compensation

Reward

benefits

18

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.

Services Benefits: Grameenphone provides such benefits to the employees -

Grameenphone allows flexible working hour. One can start their office on 8am in the

morning and leave by 4pm.

They provide transport or transport bills while attending a client meeting.

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.

In case of hospitalization of the staff, spouse or any dependent child, in any

recognized hospital or clinic, the company will reimburse 50% of the hospitalization

charges.

They also provide 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.

GP provide lunch from the office which is prepared in the office.

Leadership Style followed by our manager:

When we talked with the manager we tried to find out what kind of leadership method is

followed by him. Since we talked to him we found him as a participative leader who consults

with group members and use their suggestions before making a decision. We also tried to

know about his work. He explains his vision to others, expresses the vision not just verbally

but through behavior and last of all he applies the vision to different leadership context. He

creates and articulates a realistic, credible, and attractive vision of the future that improves

the present situation. Analyzing this we come to a conclusion that he follows Visionary

leadership.

19

Pros and Cons of our manager’s job:

When we talked the manager, we tried to find some pros and cons of his job. Those are given

below:

Fact 1: A manager’s power

Pro: Managers have more power than the people in their groups. A manager has several

functional authorities, such as setting work schedules. He is as powerful as he is capable of

making his group more successful. And while his ability to lead the group greatly influences,

his power comes from the willingness of the people in your group to grant it to him.

Con: When a manager has the power he gets overconfident of doing anything. He may not

take any suggestion from anyone for doing any work. He takes decision and then worker do

what the manager tell. If this is right of wrong no one notice. This affects badly of the total

organization. At that time many undesirable things incur.

Fact 2: A manager’s condition

Pro: He‟ll make more money in a managerial position. The perks don‟t stop with just money.

Managers usually get bigger discounts, better benefits, more vacation time and sometimes

even bonuses.

Con: A manager has to do a lot of works. Sometimes he feels it like a burden. Pressures of

regular work gives him no room for going somewhere for party or hang out with his friends.

Fact 3: A manager’s responsibility

Pro: A manager is trusted to make important decisions. He‟ll be in charge of employee

schedules, ordering supplies and budgeting. You‟ll get to interview people, hire them and

promote them. Managers have a great deal of responsibility, which for the right person, is a

big job perk.

20

Con: Nobody likes the boss, and he is lonely at the top. He is the person who always has to

make the decision, right or wrong. Wrong decisions may screw-up his job. On top of that

there are legal liabilities as well as restrictions that non-managers don't have.

Fact 4: A manager’s decision making

Pro: We found that our manager often make decisions consulting with his employees. He

thinks that it is better for doing any work and it also motivates the workers.

Con: Many men many opinions. Our manager faces problem choosing what he should do

with so many opinions.

Fact 5: Other pros and cons

Pro: Our manager has a huge budget. So it is easier for him to coordinate the whole

organization.

Con: Sometimes he faces problem communicating with others. He says something and

sometimes worker couldn‟t understand him what he want.

Conclusion:

In today‟s competitive world, Grameenphone has established successfully its position.

Grameenphone has been recognized for building a quality network with the widest coverage

across the country while offering innovative products and services and this has been possible

for maintaining proper utilization of resources, ensuring a flexible management system and

keeping a good relationship with its customers, employees and stakeholders.GP has an

extensive employee benefit scheme and customer satisfaction tools including provident fund,

group insurance, transportation facility, day care centre, children's education support, and in-

house medical support and other initiatives for customers such as airtime, information

centers, helpline, customer relation centers, interactive voice responses etc. Therefore, we can

say Grameenphone has tried its best to establish a good management system in its day to day

activities.

21

References:

www.google.com

www.wikipedia.com

www.GrameenPhone.com

www.yahoo.com

Annual Report, Grameenphone Ltd