janata bank job analysis & description

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Job Analysis & Job Evaluation August 3, 2010

INTRODUCTION

i) ORIGIN OF THE REPORT:

This report is prepared with the respect to three-month course of Job Analysis and

Performance Appraisal. I am assigned to prepare a term paper by our reverent Dr. Nargis

Akhter, Associate Professor. My task is to do job analysis and job evaluation.

ii) OBJECTIVES OF THE TERM PAPER:

Broad Objective: To broadly learn and know about the method of preparing job

analysis and job evaluation.

Specific Objective: To know how organizations of Bangladesh prepare job analysis

for their own organizations and evaluate respective job and hence fix total

compensation.

iii) METHODS:

a) Sources of data collection:

Data are mostly collected from two organizations: Janata Bank and Grameenphone primary

sources are mostly used and also a few secondary sources for preparing the report:

o P rimary sources: Primary sources are the individuals of the organizations who are

aware of the human resource practices for that organization and helped to collect the

information by answering the questions and filling up the questionnaire given to them.

o S econdary sources : Secondary information was collected from the internet about

comprehensive information about job analysis and job evaluation system.

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b) Scope of the study:

The information given by Janata Bank, Grameenphone and some general real life

assumptions.

iv) LIMITATIONS OF THE STUDY:

Some difficulties were faced while preparing this report such as-

Access to the internal information to various organizations.

Time constraint

Text constraint

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PART 1

JOB ANALYSIS

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CHAPTER-1

CONCEPT REVIEW

i) MEANING OF JOB ANALYSIS:

Job Analysis is a process to establish and document the 'job relatedness' of employment

procedures such as training, selection, compensation, and performance appraisal.

Detailed examination of the following factors is analyzed:

1. Tasks (performance elements) that make up a job (employee role),

2. Conditions under which they are performed,

3. What the job requires in terms of aptitudes (potential for achievement), attitudes

(behavior characteristics), knowledge, skills, and the physical condition of the

employee.

ii) OBJECTIVES OF JOB ANALYSIS INCLUDE:

1. Determination of the most efficient methods of doing a job,

2. Enhancement of the employee's job satisfaction,

3. Improvement in training methods,

4. Development of performance measurement systems, and

5. Matching of job-specifications with the person-specifications in employee selection.

Comprehensive job analysis begins with the study of the organization itself: its purpose,

design and structure, inputs and outputs, internal and external environments, and resource

constraints. It is the first step in a thorough understanding of the job and forms the basis of

http://www.job-analysis.net/G000.htm

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job description that leads to job specification. It is also known as human resource audit, job

study, or occupational analysis.

iii) METHODS OF JOB ANALYSIS:

Interview

Observation

Questionnaire

On-Line Forms

iv) JOB DESCRIPTION:

A job description is a list of the general tasks, or functions, and responsibilities of a position.

Typically, it also includes to whom the position reports, specifications such as the

qualifications needed by the person in the job, salary range for the position, etc. A job

description is usually developed by conducting a job analysis, which includes examining the

tasks and sequences of tasks necessary to perform the job. The analysis looks at the areas of

knowledge and skills needed by the job. Note that a role is the set of responsibilities or

expected results associated with a job. A job usually includes several roles.

iv) PURPOSE OF JOB DESCRIPTION:

The objective of a job description is to have a clear outline of duties and responsibilities to

make the screening process as direct and focused as possible.

Job descriptions may have the following elements:

improvement cooperation by giving all members of the organization insight in

existing responsibilities/roles

enabling career moves within the organization

determination of amount of pay per function

increase of results by specification of responsibilities and key performance indicators

development of job owner by specification of competences





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may include the phrase "perform other duties as assigned"

iv) JOB SPECIFICATION:

It denotes the personnel requirements of a particular job. A job specification sets forth the

skills, education, and experience required for a particular position.

CHAPTER-2

JANATA BANK

i) AN OVERVIEW:

Janata Bank is a nationalized commercial bank that was established under the BANGLADESH

BANKs Nationalization Order 1972. It was created by taking over the branches of two

abandoned Pakistani banks-the United Bank and Union Bank, which functioned in East

Pakistan. With its head office at Dhaka, the bank started its operations with an initial

authorized capital of Tk 50 million and paid up capital of Tk 10.5 million. The authorized

capital was raised to Tk 30 million in 1973. Since then the authorized and paid up capital

remained unchanged till December 1983. Later, both were increased from time to time and

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their amounts stood at Tk 8 billion and Tk 2.594 billion respectively on 31 December 2000.

The reserve funds of the bank on that date were Tk 367 million.

In addition to traditional deposit taking in various accounts and providing loans to almost all

sectors of the economy, the bank offers different types of other services and conducts 'off-

balance sheet (OBS)' activities. The value of assets created by the OBS activities of the bank

was Tk 26.07 billion in 1998 and Tk 25.46 billion in 2000. The agency services of the bank

include making payments to different public sector corporations and acting as paymaster in

the government's food procurement scheme. The bank provides loans and advances to not

only the clients of selected groups like the traders and industrialists but also to people of all

classes and professions. Side by side with industry and commerce, agriculture and other

priority sectors also receive funding and advisory services support from the bank. Janata

Bank disburses government grants to the teachers of private and public educational

institutions.

Janata Bank has a large participation in foreign exchange business including overseas

remittance services. The total volume of foreign exchange business handled by the bank in

servicing imports and exports and remittances during 1999-2000 amounted to Tk 40.312

billion. In 2000, the bank had correspondent relationships with 1,180 foreign banks/bank

offices.

In 1972, Janata Bank started its banking operations with a total initial deposit of Tk 1.57

billion; ever since the bank has been making continuous and sustained efforts to mobilize

deposits from untapped resources in both urban and rural areas. A special deposit

mobilization program introduced by the bank in 1976 resulted in remarkable increases in the

volume of its deposits, which grew at a rate of approximately 63% and 42% during 1972-74

and 1978-80. The deposits growth rate in 2000 was 8.2%. The volume of loans and advances

of the bank was Tk 1.13 billion in 1972 and it increased to Tk 5.28 billion in 1984. Major

areas that received financing from the bank were jute trade, jute industries, tanneries, sugar

industries, textile trade and industries, transport, iron and steel, tea plantation and trade,

livelihood trades/income generating activities and housing.

The credit portfolio of the bank expanded manifold after the 1980s and covered almost all

sectors of the economy. The bank was a major participant and a provider of funds in the Tk

10 billion Special Agricultural Credit Program (SACP) launched by the government in 1977.

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The total amount of its loans and advances stood at Tk 80.95 billion in 2000. Loans and

advances provided by the bank to the broad economic areas up to 30 June 2000 were:

agriculture and fisheries - Tk 4.362 billion, industry (small and cottage, and large and

medium) - Tk 32.352 billion, retail/wholesale trade and hotels and restaurants - Tk 5.215

billion, transport & communication and storage - Tk 331 million, special credit program

including poverty alleviation - Tk 1.698 billion and others - Tk 18.862 billion.

During 1999, Janata Bank disbursed Tk 16.383 billion in loans and advances and the

recovery during the year was Tk 4.541 billion. In 2000, the recovery rate was 20% of total

outstanding loans. The amount of overdue loans and advances on 30 June 2000 was Tk 27.34

billion and on 30 June 2000, the ratio of total overdue to total outstanding loans was 37.12%.

Poor loan recovery and the increase in the amount of overdue loans caused a fall in the

quality of its lending assets. The bank's total classified loan amounted to Tk 23.63 billion on

31 December 2000.

Up to December 2000 the bank's loans to the public sector were Tk 15.9 billion, of which Tk

2.15 billion was classified. 19.6% of the bank's total loans and advances went as borrowings

to the public sector enterprises. Up to the same date, the bank disbursed Tk 5.603 billion as

rural credit including Micro credit. On the other hand, the bank borrowed Tk 2.16 billion in

1998 and Tk 2.08 billion in 2000 from the inter-bank market. The credit-deposit ratio of the

bank was 77.95% in 2000. On 31 December 2000, the liquid assets of the bank were valued

at Tk 36.22 billion.

In 1999, the interest rate offered by the bank on savings deposits in both rural and urban areas

was 7.5%, while the rates charged by it on loans in different sectors averaged 12.65%. On 31

December 2000, the total and net incomes of the bank were Tk 9.25 billion and Tk 829.2

million respectively. However, an increase in the volume of classified loans weakened the

quality of the bank's assets. An increase in operating and interest expenses of the bank slowed

down the rate of growth of its total incomes in 1999-2000.

Janata Bank monitors its work through a performance budget. It has a marketing intelligence

unit and conducts a program of human resources development through training and

motivation. It introduced the Lending Risk Analysis suggested by the Financial Sector

Reform Program. Business policies of the bank in the 1990s included fulfilling capital

adequacy requirement, mobilizing deposits in large amounts, and making investments in

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more profitable ways. The bank diversified its activities in off-balance sheet items to expand

its area of operations and increase non-interest based incomes.

The management of the bank is vested in a 7-member board of directors appointed by the

government. The managing director is the chief executive and he is assisted by a deputy

managing director, six general managers and other senior executives. The general managers

are in charge of the bank's branches in six administrative divisions of the country namely,

Dhaka, Chittagong, Rajshahi, Khulna, Sylhet and Barisal. At the head office, the bank has 27

departments including a training institute. On 30 June 2000, the bank had a total of 17,138

employees. Up to 31 December 2000, the bank had 894 domestic and 4 overseas branches (in

the Middle-East). Among the domestic branches, 348 were in the urban areas and 546 in the

rural areas.

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ii) THE REASONS BEHIND CHOOSING THE POSTS IN THREE

DIFFERENT LEVELS:

A. Why Officer?

Among all entry-level posts, officer rank is the most dimensional one. The officers of Janata

Bank get various opportunities to learn different tasks through job rotation. An officer

generally experiences different tasks getting involved in different sections such as HRD,

HRDD, JBTI, WD etc.

B. Why Senior Principal Officer?

Senior Principal Officer takes part in decision making process and planning the strategies for

the Bank. They are ultimately responsible to execute the final decisions taken by the top

management and prepare the employees for following the taken decisions. They also monitor

and control the whole process and provide timely feedback depending on the employees,

performance. The Senior Principal Officer actually makes a bridge of communication

between the top level and entry level employees which is necessary for implementing the

strategies. They also find out the lacking areas where there is a need for recruitment or

training.

C. Why First Assistant General Manager?

First Assistant General Manager is a newly introduced top level post in Janata Bank. As the

top management (AGM & GM) was previously facing problems in policy and decision

making, this post is introduced to be a representative for the top management who will work

with the Senior Principal Officer in the field. They possess the authority to take decisions on

behalf of the top management. It has significantly reduced the possibility of biasness by the

Senior Principal Officer. They also suggest solutions to the AGM and GM according to the

lacking areas found by the Senior Principal Officers.

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CHAPTER-3

FINDINGS OF THE STUDY

i) THE SUGGESTED JOB ANALYSIS:

ENTRY LEVEL POSITION:

Job Title: Officer

Department: Human Resource Department

Position Code: 01-06

Activities to be performed:

Maintains employment résumé, application forms, and applicant flow logs in line with

company policy.

Retains records in line with company record retention requirements

Maintains employee personnel files in line with company policies and government

regulations.

Job Duties:

Daily

Duties performed at irregular interval

Monitory Responsibility:

Line managers and the other executives.

Delegation of Authority:

Monitors and controls the line managers’ activities

Take decisions about rewarding or punishing them

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Has the authority to take any step to manage conflicts.

Reporting Relationship:

Report to the senior officer.

Knowledge, Skill and Ability:

Computer literacy

Proficiency in English

Communication skill

Hard working capability

Integrity

Loyalty

Accountability etc.

Educational Requirements and Experience:

Title of the job

Age Qualification For Promotion

Officer 21-30

Required grade is second class or

CGPA equivalent to second class

for B.com, B.com Honors, (Post

Graduates will get preferences)

from reputed institutions. First

division for SSC and HSC.

Three years in the existing

job.

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MID LEVEL POSITION:

Job Title: Senior Manager



Activities should be performed:

Developing policy and Procedure for Recruitment and selection.

Implementing taken strategies.

Guiding officers and managers.

Evaluating the subordinates’ performance by observing them.

Report to the direct supervisors such as to AGM or GM.

Job Duties:

Daily



All the entry level employees.


Monitors and controls the subordinates’ activities and

Take decisions about rewarding or punishing subordinates

Evaluates subordinates performance


Report to the Assistant General Manager.


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Computer literacy

Proficiency in English

Communication skill

Monitoring and controlling power

Decision making ability

Leadership qualities

Integrity

Loyalty

Influencing capacity

Ability to make bias free judgment etc.


Title of the job Age Qualification For Promotion

Senior Manager 45-50

Required grade is second class or

CGPA equivalent to second class for

B.com, B.com Honors, (Post

Graduates will get preferences) in

Finance, Banking, Economics or

Accounting from reputed

institutions. First division for SSC

and HSC.

Three years in the

existing job.

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MID LEVEL POSITION:

Job Title: Assistant General Manager



Activities should be performed:

Guiding and supervising all mid level employees.

Taking care of the whole strategy implementation process.

Allocating and controlling budget.

Monitoring and evaluating employees’ performance and designing compensation

package accordingly.

Maintaining a friendly working environment through managing conflicts and

counseling.

Ensure the co-ordination of this department with all other department.

Job Duties:

Daily



All the mid level employees.


Participates in taking decisions about the major HR activities like recruitment,

compensation, promotion, designing training, performance appraisal.


Report to the General Manager.

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Computer literacy, proficiency in English

Communication skill

Monitoring and controlling power

Decision making ability

leadership qualities

Integrity

Foresightness

Ability to make bias free judgment etc.


Title of the job Age Qualification

Assistant General Manager 50-55

Post Graduation (CA/FCA /MBA)

from reputed institutions in Finance,

Banking, Economics or Accounting. .

Total experience of 20 years in

relevant field with 1 year in the post of

Deputy Managing Director.

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ii) JOB DESCRIPTION FOLLOWED IN JANATA BANK:

A. Job Description for Entry Level Position

Job Title: Officer


Essential functions of the job: Keep the logs of the employees’ résumés, applications,

performance appraisals of previous years, and incentive records. They also maintain records

of all the information regarding training need assessment, training programs conducted

previously and individual employee’s improvement level in those training. The records of

increments and festival bonuses allocated to the employees are also maintained by them.

Job context: Officer must follow the instructions given by the senior officers, Service Area

managers and cooperate with the line managers and employees.

Reporting relation and other activities: The officers have to report to the departmental

Manager. They have to frequently contact with Manager, Heads of Service Areas, line

managers and other staff.

Specific matters/cases should be discussed directly with the Principal Officer and

Senior Principal Officer.

Developing the practice of collaboration, communication and counseling amongst

other HR colleagues.

Challenges of this job:

The rank holder face challenges to identify and promote opportunities and solutions of

various problems in a changing environment.

To work with the HR Team in relation to equal opportunities and employee welfare

often in a cross functional working groups whose inspirations have a substantial

impact on HR practices.

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Other requirements of the position (mental and physical factor): The candidates

have to be mentally and physically fit for the job because they have to do some field works

and sometimes they may stay in the office for longer hours.

Knowledge and experience required:

A high level of interpersonal skill, communication skill and Trainability is needed. Work

related knowledge and proficiency in English is compulsory.


Officer 21-30

Candidates are expected to take their educational degrees

from reputed institutions. Required grade is second class

or CGPA equivalent to second class for B.com, B.com

Honors, (Post Graduates will get preferences), First

division for SSC and HSC.

B. Job Description for Mid Level Position

Job Title: Senior Principal Officer


Essential function of the job: As Human Resources (HR) Managers they must have a

clear concept about their organization’s business objectives and be able to implement policies

and follow appropriate methods which will help to select and retain the right person at the

right position to meet those objectives.

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Policy making and interpretation: Developing coordination with other departments,

assisting line managers to understand and implement policies and procedures.

Job context:

Maintain, review and update proper filing of HR handbook, performance appraisal

forms and training schedules of the organization.

Planning and preparing annual report and updating the replacement chart.

Take part in preparing compensation package for designated employees.

Maintains agreement/contract of employees.

Designs yearly manpower planning and expansion

Assist in drafting out Annual Letters and Promotion Letters.

Manages and evaluates subordinates' performance and the need of their career

development.

Planning and developing training program:

Conducting Training Need Assessment.

Make plan and Conduct training program for the existing and new employee of the

organization according to the TNA result.

Identify Training Need both individually and department as a whole.

Coordinates with external and internal trainers.

Evaluates employee performance in the training programs and give them timely

feedback.

Reporting relation: Directly report to the First Assistant General Manager or in some

cases to the General Manager.

Challenges of this job:

The post holder is challenged to take part in decision making, developing policy and

strategy which will help the organization to compete with other leading ones and

sustain in the long run. Generates innovative ideas for the welfare of the organization.

Other requirements of the position (mental and physical factor): Decision

making ability, integrity, monitoring power, conscientiousness, flexibility etc.

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Senior Principal Officer Max 52

Candidates are expected to take their educational

degrees from reputed institutions. Required

grade is second class or CGPA equivalent to

second class for B.com, B.com Honors, Post

Graduate, and First Division for SSC and HSC.

Area of Education: Finance, Banking,

Economics or Accounting.

C. Job Description for Top Level Position

Job Title: First Assistant General Manager


Essential function of the job: Provide administrative and technical human resource

assistance to Principal and Senior Principal Officers in the local department.

Policy making and interpretation: Developing Policy and Procedure. Ensure that the

Principal and Senior Principal Officers have a clear understanding about the objective and

strategy of the organization. Allocate all the necessary resources to carry out the tasks.

Job context:

Forecast the required manpower and budget for the training program.

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Preparing performance appraisal and preparing compensation package for all

employee.

Instruct and supervise other managers to execute the operation.

Monitor the gradual improvement in every level of the departments.

Managing conflict and ensuring healthy working environment.

Reporting relation: The First Assistant General Manager have to report to the General

Manager and the Assistant General Manager. Specific matters discussed direct with the

General Manager and Head of the department. Communicate with all other departmental

head.

Challenges of This Job:

Developing Strategy according to the need of the changing technology and

economical environment.

Participating in policy and decision making in supervision of the AGM and GM and

implementing that timely.

Creating a friendly and supportive environment for the employees.

Handling critical situation and come up with instant solution.

Other requirements of the position (mental and physical factor): The candidates

have to be mentally and physically fit for the job because they may have to visit other

branches for inspection.


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First Assistant

General managerMax 55

Candidates are expected to take their

educational degrees from reputed

institutions.

Area of Education: Finance, Banking,

Economics or Accounting(CA/FCA/A

CMA/FCMA/MBA/BIBM).

Total experience of 22 years in relevant

field with 1 year in the post of

Additional Managing Director or

Deputy Managing Director.

CHAPTER-4

RECOMMENDATION & CONCLUSION

The job analysis data collected from Janata Bank is organized and full of information. Janata

Bank has explained all the job duties and responsibilities and necessary requirements for

performing those duties in detailed manner. The tentative job analysis done by me is prepared

in a highly structured format which clarify the job description and specification. Hence, it

becomes so easy to understand that anyone can have a clear idea about the job just at a

glance. Whilst, the Job Analysis of Janata Bank is prepared in a descriptive way which may

take more time to be understood.

In my job analysis I have suggested the delegation of authority from which an employee can

easily understand ones autonomy and limitations in the job. Besides, I have also suggested

the position number which illustrates the chain of command inside the department; and the

required years of experience which provides a clear direction of an employee’s career

development.

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Conclusion:

In conclusion, after visiting Janata Bank and collecting their Job Analysis report I have

realized that HR prospects in Bangladesh are gradually increasing and developing as well.

According to my observation, the HR activities of Janata Bank are more structured than I

have expected. But my suggested Job Analysis is organized and easily understandable. Some

significant differences between the real scenario and my suggestion might be recognized as I

have followed the theoretical direction based on my prediction. However, I think and hope I

have successfully assumed the factors accurately in preparing this Job Analysis.

Reference & Bibliography:

Performance Appraisal and sample appraisal templates and 360 degrees appraisals,

http://www.businessballs.com/performanceappraisals.htm

Introduction to Performance Appraisal,

http://www.performance-appraisal.com/intro.htm

Performance Appraisal – Wikipedia, the free encyclopedia.

http://en.wikipedia.org/wiki/Performance_appraisal

Job Analysis - Wikipedia, the free encyclopedia.,

http://en.wikipedia.org/wiki/Job_analysis

Job Analysis – Definition of Job analysis

http://humanresources.about.com/od/jobdescriptions/g/job_analysis.htm

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PART 2

JOB EVALUATION

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CHAPTER-1

CONCEPT REVIEW

i) MEANING OF JOB EVALUATION:

Job evaluation is the process of systematically determining a relative internal value of a job in

an organization. In all cases the idea is to evaluate the job, not the person doing it. Job

evaluation is the process of determining the worth of one job in relation to that of the other

jobs in a company so that a fair and equitable wage and salary system can be established. Job

evaluation is a practical technique, designed to enable trained and experienced staff to judge

the size of one job relative to others. It does not directly determine pay levels, but will

establish the basis for an internal ranking of jobs.

ii) PRINCIPLES OF JOB EVALUATION:

1. Clearly defined and identifiable jobs must exist. These jobs will be accurately

described in an agreed job description.

2. All jobs in an organization will be evaluated using an agreed job evaluation scheme.

3. Job evaluators will need to gain a thorough understanding of the job

4. Job evaluation is concerned with jobs, not people. It is not the person that is being

evaluated.

5. The job is assessed as if it were being carried out in a fully competent and acceptable

manner.

6. Job evaluation is based on judgment and is not scientific. However if applied correctly

it can enable objective judgments to be made.

7. It is possible to make a judgment about a job's contribution relative to other jobs in an

organization.

8. The real test of the evaluation results is their acceptability to all participants.

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9. Job evaluation can aid organizational problem solving as it highlights duplication of

tasks and gaps between jobs and functions.

iii) OBJECTIVES OF JOB EVALUATION INCLUDE:

The main objectives of job-evaluation are as follows:

1. Job evaluation is used to determine the relative worth of every job. Relative wages

may be fixed on the basis of an objective evaluation and comparison.

2. It establishes the general wage level, which could be comparable with factories

nearby.

3. It provides a basis for ranking different jobs.

4. The relative worth and wage-structure of a new job may be easily established in

comparison with the established jobs.

5. It helps in establishing line of authority, responsibility and accountability.

6. It provides a sound basis for wage negotiation. It reduces grievances of workers due

to improper wages. It eliminates wage inequality within the organization.

7. Job evaluation is useful in the selection and recruitment process, as skill match with

job profile may be achieved.

8. It is helpful in achieving cordial relations between management and union.

9. It provides a base for on-job training and orientation programs.

iv) METHODS OF JOB EVALUATION:

Ranking

Classification

Point Method

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Factor Comparison

Market Comparison

v) FACTORS IN JOB EVALUATION:

Job evaluators often assess jobs based on these factors:

1. Training level or qualifications requirements

2. Knowledge and skills requirements

3. Complexity of tasks

4. Interaction with various levels of the organization

5. Problem-solving and independent judgment

6. Accountability and responsibility

7. Decision-making authority

8. Degree of supervision required

9. Cross-training requirements

10. Working conditions

11. Degree of difficulty in filling job

vi) JOB EVALUATION METHODS IN ELABORATION:

A. RANKING

Ranking jobs is the easiest, fastest, and least expensive approach to job evaluation. It is also

most effective in smaller organizations with few job classifications. To rank positions, order

jobs from highest to lowest based on their relative value to your organization.

The process of job ranking typically assigns more value to jobs that require managerial or

technical competencies. More value is also assigned to jobs that supervise, exercise decision-

making authority, or rely on independent judgment. For example, a job-ranking system might

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rank the job of CEO as the most valued job within the organization and the job of product

assembler as the least valued.

Advantages: Simplicity is the main advantage in using a ranking system. It is also

easy to communicate the results to employees, and it is easy to understand.

Disadvantages Ranking jobs is subjective. Jobs are evaluated, and their value and

complexity are often assessed on the basis of opinion. Also, when creating a new job,

existing jobs must be reranked to accommodate the new position.

B. CLASSIFICATION

The general purpose of job classification is to create and maintain pay grades for comparable

work across your organization.

To conduct a job classification: First, write descriptions for a category of jobs; next, develop

standards for each job category by describing the key characteristics of those jobs in the

category; finally, match all jobs to the categories based on the similarity of tasks, the

decision-making exercised, and the job's contribution to the organization's overall goals.

Universities, government employers and agencies, and other large organizations with limited

resources typically use job classification systems. These types of organizations have many

types of jobs at diverse locations and must maintain equitable and fair standards across all

work settings.

Advantage Job classification is simple once you establish your categories. You can

assign new jobs and jobs with changing responsibilities within the existing system.

Disadvantages Job classification is subjective, so jobs mightfall into several

categories. Decisions rely on the judgment of the job evaluator. Job evaluators must

evaluate jobs carefully because similar titles might describe different jobs from

different work sites.

C. POINT EVALUATION

Point evaluation is the most widely used job evaluation method. In a point evaluation system,

you express the value of a particular job in monetary terms. You first identify compensable

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factors that a group of jobs possess. Based on these factors, you assign points that

numerically represent the description and range of the job.

Examples of compensable factors are skills required, level of decision-making authority,

number of reporting staff members, and working conditions.

Advantage This method is often viewed as less biased than other methods because

the job evaluator assigns each job's total points before the compensable factors

become part of the equation.

Disadvantages Subjective decisions about compensable factors and the associated

points assigned might be dominate. The job evaluator must be aware of biases and

ensure that they are not represented in points assigned to jobs that are traditionally

held by minority and female employees.

D. FACTOR COMPARISON

Job evaluators rank jobs that have similar responsibilities and tasks according to points

assigned to compensable factors. The evaluators then analyze jobs in the external labor

market to establish the market rate for such factors. Jobs across the organization are then

compared to the benchmark jobs according to the market rate of each job's compensable

factors to determine job salaries.

Advantage This method results in customized job-ranking.

Disadvantage Compensable factor comparison is a time-consuming and subjective

process.

E. MARKET COMPARISON

Job evaluators compare compensation for your organization's jobs to the market rate for

similar jobs. This method requires accurate market-pricing surveys.

It is to be mentioned that this is the most widely used method in today’s time in Bangladesh.

CHAPTER-2

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GRAMEENPHONE LTD.

Grameenphone is now the leading telecommunications service provider in the country with

more than 23 million subscribers as of December 2009.Presently, there are about 50 million

telephone users in the country, of which, a little over one million are fixed-phone users and

the rest mobile phone subscribers. Starting its operations on March 26, 1997, the

Independence Day of Bangladesh, Grameenphone has come a long way. It is a joint venture

enterprise between Telenor (55.8%), the largest telecommunications service provider in

Norway with mobile phone operations in 12 other countries, and Grameen Telecom

Corporation (34.2% ), a non-profit sister concern of the internationally acclaimed micro-

credit pioneer Grameen Bank. The other 10% shares belong to 10% to general retail and

institutional investors.

Over the years, 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 launched its 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.

CHAPTER-3

FINDINGS OF THE STUDY

i) GRAMEENPHONE’S GENERAL POLICY:

Compensation is what an employee receives in exchange for his/her physical and mental

works, and contribution to the company. Compensation does not represent only salary but a

wide range of benefits and service are part of the total compensation package. Grameenphone

wishes to pay rewarding and competitive salaries to attract, retain and motivate competent

22


and skilled employees at all levels of the Company. By rewarding and competitive salaries it

means that each employee should be rewarded in accordance with:

1. What the post requires,

2. How skilled the employee is and

3. What the market pays for work of the same type.

Grameenphone wishes to design a compensation system that has strong positive impact on

employees and ultimately on the Company's performance. Keeping Company's strategic

objectives and unique characteristics and environment in mind, Grameenphone determines a

number of criteria for designing a compensation system. The criteria are:

i. Internal and external Equity: Internal equity means that there should have fairness of

the pay structure within the Company i.e. similar jobs get similar pays. External

equity assures that jobs are fairly compensated in comparison with similar jobs in the

job market. To achieve internal equity, periodic job evaluation that assesses the

relative worth of jobs throughout the Company should be conducted. On the other

hand, to achieve external equity, periodic market survey and cost of living adjustment

should be taken into account.

ii. Competitiveness: There are obvious affect of market forces on compensation.

Compensation must respond to the supply of and demand for employees in the market

since employers compete for work force.

iii. Cash and non cash benefits: Cash payment motivates employees through monetary

rewards such as salary and allowances. The Company pays cash benefits according to

ability to pay. Non cash benefits such as job security and making the job interesting is

also taken into account.

iv. Performance based pay: Employee productivity, skills and performance are also

important determinants of the compensation system of the Company.

v. Consistency: All-out efforts are made to ensure that compensation system is

consistent with HR policies and it is uniform and stable.

22


Grameenphone wants a salary system which rewards qualification, good practice and

performance. During fixation of employee's salary, Grameenphone looks at the following

criteria:

Company's affordability to proposed salary level

Competitive pay in the market for similar job

Growth of the Company

Individual's economic welfare

Fairness and equity

There are number of ways Grameenphone fixes employees salary. They are:

1) During appointment through salary negotiation. The salary for the new hires will be

fixed based on the position level, the applicant’s qualification, skills, experiences and

the budgetary provision,

2) Year end inflation adjustment with the basic salary,

3) Salary adjustment during confirmation, based on performance,

4) Due to revision of salary structure, an employee’s salary will be adjusted in such a

way that the new salary shall not be less than his/her current salary.

5) For a promotion to higher Grade, employee will occupy the step of the upper grade in

such a way that one receives an increased salary not less than his/her one step

increment at the current grade.

Hence, according to the information provided above we can come to a conclusion that

Grameenphone uses market comparison method to evaluate job.

Regardless of what workplace studies reveal, working is about compensation. Working can

be about much more, too, but the bottom line for people is that their work must pay their

bills. Employees desire reasonable, viable, and market-responsive salaries. Compensation is

the visible demonstration that an employee's work is valued. Consequently, effective

compensation is one of an employer's most important and powerful communication tools.

ii) JOB EVALUATION METHOD FOLLOWED IN GRAMEENPHONE:

22


Employees desire reasonable, viable, and market-responsive salaries. Compensation is the

visible demonstration that an employee's work is valued. Consequently, effective

compensation is one of an employer's most important and powerful communication tools.

Grameenphone uses market comparison method. It studies salary surveys and other market

data to determine pay ranges. Because a key factor in employee retention is satisfaction with

pay, this figure should serve as a signal to employers that they need to conduct market pay

studies and communicate the results to their employees. Market pay is the compensation paid

for a specific job, including information about bonuses and benefits that is determined by a

continual analysis of the competitive job market. Increasingly, with data so readily available,

potential candidates and internal employees are negotiating their salaries armed with

knowledge of market pay data. As an employer, Grameenphone is prepared to respond.

Market pay data is a part of their organization's overall strategy to determine equitable

compensation. Otherwise an organization might not remain competitive.

Effective market pay studies also help Grameenphone in several studies:

1. Carry out your compensation philosophy (above market, below market, and at

market).

2. Attract talented employees.

3. Negotiate fair compensation with candidates.

4. Control compensation costs.

5. Communicate the rationale for salary grades and ranges.

6. Improve employee satisfaction through fair compensation practices.

7. Improve interaction with and trust in management.

To accomplish these results, Grameenphone creates and maintains an effective market pay

measurement system, and is knowledgeable about how to integrate salary surveys into its

company's compensation philosophy and practices. Market pay studies are critical for

establishing equitable and fair compensation within an organization. Attracting and retaining

superior employees for ones jobs is critical to ones success as a business, particularly as

demographic changes (such as population aging) create a more competitive job market

because there are fewer candidates. Organization cannot afford to let the market pass it by.

An effective market pay study is the answer which Grameenphone follows.

22


Therefore, the value that is assign to jobs in organization's compensation system should be

driven by the most up-to-date information about market pay. Practical market pay data can be

obtained which includes information about salary, benefits, and bonuses, from a continual

analysis of the competitive job market.

Grameenphone incorporated strategic work valuation in structuring pay. Strategic work

valuation emphasizes both the market pay rate for the job and the value of the job to the

organization in which the valuation factors are specific to its organization. These valuation

factors measure the impact of each job in its organization's success.

By considering all these factors Grameenphone prepares its pay structure. In addition to using

market comparison method of job evaluation it also has its internal classification of job.

iii) TOTAL COMPENSATION IN GRAMEENPHONE:

The features of Grameenphone’s Pay structure are stated below:

1. Grameenphone maintains a degree of fairness between the pay allocated to jobs

having different level of skill, responsibility and experience.

2. Each step salary (other than step 1 salary) in any grade is calculated by adding a

certain fixed amount with the previous step salary. The fixed amount may vary

between grades.

3. Employees move upward in the steps will reflect the good performance, increased

skills, work related knowledge and/or years of work with Grameenphone.

4. The salary structure will be reviewed after every three years in September.

For a complete month, one month basic salary applies but for fractional period, pro-rata basic

is calculated by dividing basic into 30 days as set standard.

In a number of situations, Grameenphone deducts basic salary of the employee. They are:

1. Deduction due to absence without proper authorization

2. Deductions for damage to or loss of property/goods expressly entrusted to the

employee for custody; or loss of money for which he/she is required to account,

22


where such damage or loss of money is directly attributable to his/her neglect or

default.

3. Deductions for adjustment of advances or overpayment, if any

4. Deduction of income tax payable by the employee and

5. Employee's provident fund.

For better convenience, the total compensation of Grameenphone is divided into three

categories and they are as follows:

1) Basic pay

2) Fringe benefit

3) Incentives

iv) BASIC PAY:

Basic salary is an important part of employee's salary. It is paid monthly with other

admissible allowances such as house rent, medical allowance, and transportation allowances

in applicable cases. Grameenphone provides salaries to its regular and contract staff

according to Grade and Salary Matrix of the Company. The Grade and Salary Matrix of

Grameenphone is composed of 13 classified grades and under each grade there are 10 salary

steps. The Pay Structure for Grameenphone employees represents the salary level of the

company. Each grade has salary ranges and the fixation of basic salary during appointment,

confirmation or annual appraisal completely depends on the discretion of management. The

salary structure is kept strictly confidential and not shared with employees or outside except

authorized officials.

v) FRINGE BENEFIT:

Fringe benefits are compensations made to an employee beyond the regular benefit of being

paid for their work. It is not related to performance. Following are the fringe benefits

provided by Grameenphone:

PROVIDENT FUND

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The permanent employees of the Company are eligible to become members of the Provident

Fund. Employee contributes 10% of their basic to the provident fund and the Company

makes equal contribution to the fund. The Company's contribution starts once the employee

has become permanent employee of the Company.

A Provident Fund Trustee, with separate rules, is formed for managing the provident fund.

The PF maturity period is three years. Employee has to serve minimum three years for being

eligible for both employee and company contribution.

GRATUITY

Gratuity is paid to an employee for providing a life time service to the Company. The

eligibility is minimum five- year service with the Company.

Gratuity amounts are linked with the respective employee's length of service which are as

follows:

Gratuity Years of Service

@ 1 month's basic/for each year 5 years

@ 1.5 month's basic/for each year 5 Years to 10 Years

@ 2 month's basic/for each year More than 10 years

Gratuity is equivalent to one (or more as the case may be) month's basic based on the last

drawn basic salary for every completed year of service or for any part thereof in excess of six

months.

HOUSE RENT

House rent is another component of pay structure. The amount of housing allowance is

expected to allow employees to rent a reasonable but standard house. To the extent possible,

a fair level of consistency between house rent and the respective employee's living standard is

ensured. The company expects that employees rent a standard house.

The housing allowance is calculated at a certain percentage of respective employee's basic

salary. The percentage is equal irrespective of employee's place of posting. If an employee

joins or leaves the Company on a day other than the beginning of a calendar month, then

his/her housing for that month will be calculated fractionally by dividing house rent by 30

days as set standard.

22


MEDICAL ALLOWANCE

Medical allowance is paid to the employee at a fixed amount and the monthly payment is

made according to their position entitlement. This medical allowance is in addition to

hospitalization or on duty accident benefits, if any.

EMPLOYEE TRANSPORTATION BENEFIT

Grameenphone provides transport benefits to all employees as per the following guidelines &

procedures. For administration purposes of this employee benefit, the Transport Section and

the Transport Policy will be applicable.

It is essential that all employees use the transport benefits as specified in this policy as per

rules and guidelines described herein. For local travel outside office on official purpose, the

employee will be reimbursed actual travel costs. In this regard, employees should claim

reasonable transportation costs.

For all employees in the Manager & below level, a lump-sum amount of Tk. 100 can be

claimed as transportation allowance for each way travel to office in a weekly holiday or other

holiday in case transport could not be provided even after request is made. Such request

should be made by 30 minutes prior to end time of normal office hours of the last day of the

week. It is essential that by no means divisional vehicle be used for employee pick & drop.

The allowance for travel to office in a weekend or holiday will be claimed by using

prescribed allowances format duly endorsed by immediate supervisor and approved by

Department/Divisional Head.

TRANSPORT BENEFIT FOR EMPLOYEES OF DM LEVEL AND BELOW

If opted for, employees in DM and below level will get pick-up and drop services to and from

convenient places near to their respective residence for arriving and departing from office.

However, on exceptional cases, operational employees might be given pick up and drop to

and from home and technical sites by on-call divisional vehicles as per the policy guidelines

for such vehicles. Such pick up and drop services will be arranged by Grameenphone vehicle

or hired vehicle.

Route for pick & drop services shall be determined as per the actual need of the employees

and in accordance to road condition by the Transport Section. Employees are discouraged to

frequently change the route plan. Employees on board such vehicle are not authorized to

change the pre-determined route or to influence drivers or fellow employees to do the same.

22


Employees shall be given the option of choosing between Transport Allowance and Pick &

Drop service by filling a prescribed format.

In case of new employees, the declaration of his/her choice for availing the transport service

or claiming allowance will be taken at joining. Based on option, new employees will be paid

transportation allowance effective from the date as mentioned in the prescribed format. This

will also be applicable for transferred/promoted employees.

Once the option has been given, employees will not be able to change their choice within the

next three months, unless employee has been transferred or has medical reasons supported by

documentation from registered physician. Employees opting for Pick & Drop service shall be

issued with a Transport Pass, which needs to be returned should the employee intend to

switch the option after the specified three months or at the time of separation from

employment. The option will be effective from the first day of a month. Therefore, the

employee will communicate their choice of option at least 10 days before the beginning of

the month.

Transport Section will monitor the use of transport facility being used by the employee in a

particular route. Partial Allowance and One-way pick & drop service is not allowable.

Employees with transport pass who require working beyond normal office hours will be

given staff drop by company pool vehicle at specified time on pre-determined routes. All late

hour drops after dusk will be provided up to the nearest point of the employees’ home.

Employees with transport pass who requires to work beyond normal office hours need to

inform Transport Section in timely manner through their supervisor enabling transport

section to organize necessary number of vehicles for such drop. Part-time and contractual

employees will be allowed to use drop facilities as per the Transport Administration

Guideline.

CAR SCHEME OPTION FOR DGM LEVEL EMPLOYEES

Under this scheme, company will finance to support all confirmed employees in the DGM

level to have their own transport for personal convenience and safer mode of transport.

Types of Car: Employees can purchase new or unregistered reconditioned cars as specified in

Appendix-Car Scheme.

Value Ceiling: The maximum car value will be as per specifications laid down in Appendix-

Car Scheme.

Employee’s contribution: Individual employees availing the car scheme will have to bear 1/3

(one third) of the total cost of the car.

22


Insurance and Registration Costs: The Insurance and registration costs of the car will be

borne by the company.

Inspection of Reconditioned cars: Reconditioned cars may be purchased within the value

ceiling specified in Appendix-Car Scheme. Purchase of Reconditioned cars will be subject to

inspection procedures and engine analysis as per company specifications in a reputed

workshop designated by the Company. The Company’s decision as to whether a

reconditioned car meets the inspection standards will be final.

Fuel and Maintenance Allowance: All fuel, maintenance, repair, servicing, and replacement

of parts and/or similar costs will be provided as per Appendix-Car Scheme.

Alternative: If an employee does not avail the scheme, he will be entitled to an allowance of

Tk. 23,000/month instead of Tk. 11,500 to maintain his personal transport or have self

arrangement.

Applicable Conditions: To avail this scheme, an employee will have to sign a surety bond to

serve the company for 5 (five) years. In case the company has made full payment of the

company part for the purchase of the car, and the employee leaves the company before

completion of 5 years, pro-rata deduction based on the company provided amount will be

made from the employee’s final settlement amount and the individual will take the car. All

costs relating to the transfer of ownership of the car shall be borne by the individual.

After completion of the 5 years, the ownership of the vehicle will be transferred to the

employee and he/she will be eligible to apply for the Car Scheme again.

On Promotion: If the employee gets promoted to AGM during/before the expiry of the

scheme; the company will pay the remaining balance of the total amount and take ownership

of the vehicle. The employee will continue using the car with full support and at the end of

the remaining period of the five years term he/she will own the car.

LATE WORKING HOURS AND REPRESENTATION ALLOWANCE

Manager (including DM) and above level of employees are permitted to claim entertainment

allowance of Tk. 200 per day for working three or more hours of work in excess of their

normal working hours.

TRANSPORT BENEFIT FOR AGM AND ABOVE

For employees in the AGM and above level, Grameenphone will provide company vehicles

as per the following entitlement table, guidelines and regulations –

`

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Designatio

n

Engine Volume(CC) Vehicle

Maintenanc

e and other

expense

Maximu

m Fuel

Allowanc

e (litre)

Max OT

Allowanc

e for

Drivers

Driver

Allowanc

e

New Recondition

AGM1300 1500 By GP 250 100 Hrs

Actual as

per

Company

Policy

GM 1500 Up to 1800 By GP 250 100 Hrs

Actual as

per

Company

Policy

DD

2500

Nissa

n X-

Trail

Not

Applicable

By GP 300 100 Hrs

Actual as

per

Company

Policy

Director 3500 Not

Applicable

By GP Actual Actual

Actual as

per

Company

Policy

If the vehicle plies outside the respective city area for official purpose, the fuel consumed

extra will be allotted based on that vehicle’s average fuel consumption rate. If the vehicle

runs on CNG limit of CNG will be equivalent value of the fuel cost. Grameenphone will

arrange the drivers for these vehicles with the consent of the concerned employee. No spare

driver is possible to be provided for these drivers going on leave.

On resignation of an employee entitled for personal vehicle, the particular assigned vehicle

will be under the custody of Administration department. Management will decide as to the

use of the vehicle thereafter.

Car specified according to each designation can be rented by GP for employee’s use until the

car is purchased and allotted to the particular employee. Car purchased/issued shall be

replaced after five years. The car shall be retained by the user (for AGM & GM level) if it has

22


been used by them for a period of five years. If the employee leaves the company before the

time period, the used vehicle shall be sent back to Transport Pool for Transport Section to

dispose of the vehicle as per the Asset Disposal Guideline of Grameenphone.

If an AGM is promoted to GM, he/she will continue using the same car for five years from

the date of first issue/purchase. If a GM/DD is promoted to a higher tier of the organization,

he/she will continue using the car till authorized car as per his/her new hierarchy is provided

to him/her. Upon receiving the authorized vehicle according to his/her new designation, the

old car shall be retained by Transport Pool to be reissued/disposed off.

TRANSPORT BENEFIT FOR MANAGERS AND DGMS

Managers/DGM level employees are provided with door-to-door pick-up and drop services

with Company vehicle. However, they too can claim for transport allowance instead of

pickup & drop as per their entitlement. Employees in Manager/DGM level will get pick up &

drop by the common pool vehicles designated for them. Should the road condition of the

residence of Manager / DGM deters vehicles to provide door-to-door service, such service

shall be rendered to the nearest point of the residence of the Manager/DGM.

Divisional/Department transport cannot be used for pick up drop when common pick up drop

service is available. However on exceptional cases in emergency operational requirement an

employee in Manager/DGM level can be picked up from his/her residence to the site and

dropped back to his residence by the department’s vehicle. This practice cannot be made on a

regular basis.

Transport section, in accordance with the user shall determine the route for Managerial pick

& drop. Managers/DGMs who fail to avail their regular drop service at the end of the work

require taking common late-drop. For such arrangement, concerned Manager/DGM needs to

inform Transport Section for their arrangement. If anyone wants to leave early due to

personal reasons, s/he will not get the drop facility except emergency.

OVERTIME

Overtime is defined as “hours worked beyond normal working hours” that has prior approval

from department / section head.

Statement of principle: Company expects that employees shall have proper work plan.

Disorganized or unplanned work habit that necessitates extra hours to work is discouraged. In

case of emergency, employees may require working beyond normal working hours for a short

duration as approved by department /section heads.

22


Overtime Policy: Employees in officer level or below are eligible for claiming overtime

allowances. Normally overtime is calculated at the double of basic salary on standard

working hours (208 hours a month). The hourly overtime rate is calculated as under:

Hourly rate = (Monthly basic X 2) /176

However, for working from 10 PM to 6 AM, 3 times basic salary will be applicable.

Normally overtime will not exceed 30 hours in a month. In exceptional cases, second level

supervisor of an employee can approve overtime beyond the limit of 30 hours.

As a standard, overtime will be claimed by using a prescribed format wherein the date, time

must be mentioned. The overtime claim must be endorsed by immediate supervisor and

approved by Department/Divisional Head before submission. Overtime shall not apply in

case of outstation travel or attending any training program.

For contractual employees, a monthly overtime allowances will be applicable according to

following slabs:

Extra hours Amount

10 - 19 hours Tk. 1000

20 - 29 hours Tk. 2000

30 - 39 hours Tk. 3000

40 - 49 hours Tk. 4000

50 - 59 hours Tk. 5000

60 hours and above Tk. 6000

SHIFT ALLOWANCE

Shift allowance is paid to managers and below level employees who work in a shift other

than normal working hours of 8 AM to 5 PM.

The shift allowance is paid by hourly rate. There are different rates for different established

shift jobs. Respective department can define shift hours according to own convenience but

payment will be made as per the following table:

Shifts Duration Rate per hour

General Shift 8 a.m.-5 p.m. ---

Evening Shift 4 p.m.-12 a.m. 30

22


Night Shift 12 a.m.-8 a.m. 45

Holiday Shift Any time 40

Shift allowance is also applicable for contract employees at the above rate. Shift allowance

will not be more than Tk. 4500 in a month. In case someone’s shift duty falls in 2 defined

shifts then pro rata allowances will apply. For example, for working in shifts from 2 PM to 11

PM, shift allowance will be calculated according to the following principle:

2 PM to 5 PM : No shift allowance

5 PM to 11 PM : 6 hours shift allowance @ 30 per hour

When shift time ends, and employee has to work further, he/she will be compensated for the

additional hours served by either overtime (for officers and below) or extra hour allowance

(for DM/DSE, Managers/SE or equivalent positions) as the case may be. But during the

defined shift hours, no overtime or extra hour allowance will apply.

Each employee is required to submit a monthly statement to Finance in prescribed allowances

format. The statement must be endorsed by immediate supervisor and approved by the

Department/Divisional Head. In case of roaster duty pre-approvals have to be made by the

divisional heads mentioning actual hours with no major deviations. The statement is prepared

within the end of the month and the deadline for submitting the statement to Finance is 15 th of

the following month.

O N CALL ALLOWANCE

On Call Allowance will be applicable for all regular or contract employees in manager grade

and below who may remain standby (on call duty) for emergency services to be provided for

the interest of the Company. This is Company's policy to compensate those employees for

their extra hardship. The On Call Allowance rate is Tk.250 per day. Such allowance is

approved in addition to overtime allowance paid to the employee.

On Call Allowance cannot be more than 15 days in a month. At the end of each month, an On

Call Allowance statement of each employee has to be submitted to Finance upon

endorsement of immediate supervisor and approval of Department/Divisional Head.

BONUS

All employees are eligible for two bonuses in a calendar year which is an amount equivalent

to their two months basic salary.

22


One bonus is paid during Eid-ul-Fitr at a flat rate to all employees irrespective of the religion.

Another bonus is paid as per the following festival of different religious affiliation:

Muslim : Eid-ul-Azha

Hindu : Durga Puja

Buddhist : Buddha Purnima

Christian : Merry Christmas

Two month's basic as bonus is paid in full for a calendar year or a pro-rata amount for

incomplete calendar year, whichever may be the case. The bonus will be paid according to

the basic that is due on the festival day, not the basic on the payment day.

An example: An employee who joins on April 1 and if there are two festival in that calendar

year, then the employee will get fractional festival bonus according to the following formula:

Bonus = (2 months basic x days with the Company) / 365

HR will prepare the bonus list prior to three weeks time of Eid-ul-Fitr and the respective

festival day and Accounts, based on the list, will arrange to transfer bonus amount two weeks

ahead to employee's account.

An employee who joins after festival date will be paid bonus after the end of the year. If an

employee leaves the Company on any day preceding to the festival bonus payment date for

whatsoever reasons other than retirement, his/her festival bonus will not be paid.

EDUCATIONAL GRANT

An employee can avail Educational grant for pursuing higher studies in a discipline related to

current responsibilities or in an area where he has future career aspirations. This will enable

him/her to have personal development and better contribute to the business.

Eligibility: Employees at any level having two year or more service length with

Grameenphone will be eligible for the Educational grant.

Details of the Grant: Grameenphone will bear up to 75% of the total course fee, not

exceeding Tk. 350,000. The total number of grants will not exceed 40 per year.

22


The grant will be disbursed as reimbursement of the course fee per period/semester.

Course Criteria: Employees will be allowed to pursue higher studies beyond working hours

that is related to his particular profession. Educational grant will not be applicable for any

certificate course. The grant will apply for in-country courses. An employee will be allowed

to receive the grant for only one course at a time. After the completion of the course, he/she

may apply for another grant. However, first time applicants will be given preference.

Conditions: To sustain eligibility for the Educational grant, an employee must maintain at

least an average standard in each semester/period throughout his course. In case his

CGPA/class falls below the above mentioned standard, he/she will not be reimbursed for that

particular semester/period. An employee availing the Education Grant will sign an agreement

to serve the company for 2 years from the date of completion of the course. The employee

will submit a formal letter from the Educational Institute clearly mentioning the date of

completion of the course. In case of separation from the company before the 2 years term,

proportionate cost considering the 2 year period will be deducted from his final settlement

amount. In case the employee discontinues the course, or is separated from the company

during the course, full amount will be deducted from the final payment.

CHILDREN EDUCATION ALLOWANCE

Children education assistance is an allowance to share employees’ children’s educational

expenses. All confirmed employees will be eligible to avail children educational benefit

according to the following entitlement structure –

Level Entitlement (maximum per child per month)

Assistant - Officer Tk 1000

DM - Manager Tk 2000

DGM - AGM Tk 3000

GM - Deputy Director Tk 4000

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To avail the children education assistance, an employee must declare and record his/her

child’s information and submit an attested/certified copy of the birth certificate of the child to

HR. The amount will be paid out with the monthly salary of the employee. An employee can

avail this benefit for all of his/her school going children below 18 years of age. For both the

parents working in Grameenphone, only one claim will be allowed. The children education

benefit will be effective from March 2006.

LONG SERVICE AWARD

An employee on completion of 5 years as of March 26 each year will be acknowledged for

his/her contribution to the company. The employee will receive a gift within an amount of

Tk. 30,000 for completing 5 years at the Long Service Award giving Ceremony organized by

HR. Those completing the 5 year tenure after March in any particular year will be entitled

for the award in the subsequent year.

HARD FURNISHING

Hard Furnishing is an incentive given to employees to assist improvement in their lives by

buying durable household goods such as A/C, Freezer, TV, Home Theater Systems, Stereo

Systems, Washing Machine, Kitchen Appliances, and Furniture etc. All confirmed employees

in Manager and above level will be eligible to avail Hard Furnishing according to the

following entitlement structure –

Level Entitlement

Manager Tk 200,000/-

DGM Tk 250,000/-

AGM Tk 300,000/-

GM Tk 350,000/-

22


Deputy Director Tk 400,000/-

Payout of Hard Furnishing will be made on a reimbursement basis upon submission of the

payment vouchers of the goods purchased by the employee. An employee will be eligible to

avail Hard Furnishing once in every 3 years. Payout of the amount desired by the employee

availing the benefit will be done by one go. If an employee avails an amount lower than his

maximum entitlement, he/she will not be able to avail his/her remaining balance.

Once availed, the employee has to serve the company for 3 years from the date of

disbursement of the amount. This 3 years period will be effective for any employee even if

he/she avails lower than his maximum entitlement amount. If he/she is separated from the

company before completing the 3 years period, pro-rata deduction on the basis of his/her

amount availed will be made from his/her final settlement amount.

EMPLOYEE MOBILE PHONE

Grameenphone provides mobile phone to all employees that facilitates our work and

establishes communication between employees and family. In regard to the use of mobile

phone, there are a number of guidelines that every employee has to follow strictly.

Type of set: Employees will get company decided handset along with connection as part of

their package. In case different handset is required for technical use or special features are to

be incorporated in handset, it will be against divisional budget and respective Directors will

approve of such handsets.

1. For r egular employee : Company approved handsets will be provided to all regular

employees for a 2 year term. After 2 years new handsets will be issued.

2. For Contract employees : The handsets will be given to those contractual

employees (based on requirement) whose agreement is for at least 1 year and the cost

would be deducted from respective divisional budget. However, in case of business

requirements, lesser duration may be considered. For resignation cases, same policy

applies as of regular employee.

22


3. For Consultant (local & foreign) : The respective department/division will provide

handset to consultants, based on requirement, from divisional budget. If any

consultant wishes a handset for their family members they would buy the handset in

their own.

4. For driver & support staff : The handsets would be issued by the third party through

agreement. GP will pay bill up to certain limit.

5. For BR employee : Respective division will handle new issue, loss and theft cases of

BR employees according to their divisional budget/policies.

Employees should be more responsible for the safeguarding of handsets provided by the

company.

Tariff Rate: Employee Mobile Phone Tariff Rate under GP Account will be as under (except

BR employee):

1 second pulse,

GP employee to GP employee: FREE,

GP employee to any other GP number: Tk. 2/min (both peak & off peak),

GP employee to other operators: Existing rate applies.

Mobile usage limit: Company will bear phone bill up to certain limit for different level of

employees. The limits are:

Level Limit

Director Tk.10,000

DD/GM//AGM/DGM/Manager or equivalent

positions

Tk. 5,000

DM/Officer/Assistant or equivalent positions Tk. 3,000

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Support staff, Drivers Tk. 1,500

Respective Division will decide mobile usages limit for contract employees/ consultants in

line with the above usages limit policy.

ACCIDENT BENEFIT

In the event, an employee regular or contract, meets an accident while in working hours, in

the workplace, and during carrying out work, the employee will be reimbursed 100% of all

legitimate expenses in respect to such accident. “On duty” means that the employee has been

in the course of discharging official assignment which is attributable to the pursuit of work

objectives. If an accident occurs at a time when the employee travels from residence to office

but has not yet reached duty station or on his/her way to residence from the office, accident

benefits will not apply.

The reimbursement in respect to accident benefits is contingent upon submission of the

following: A requesting memo from the concerned department stating the nature of injury

(internal or external) resulting from accident on duty. Doctor’s prescription and all supporting

vouchers in original form Discharge certificate from the hospital/clinic, if admitted.

The expenses include:

1. Doctor’s consultation fee in respect to accident

2. All medicine costs supported by Doctor’s prescriptions

3. All pathological tests fees in respect to accident

4. Hospital rents during hospitalization, if any

5. Operation charges, if any

6. Any other expenses relating to accident

The concerned Departmental Head will recommend such expenses and will forward medical

bill to HR for approval.

ACCIDENTAL DISABLEMENT

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When an employee becomes disable resulting from accident Grameenphone, depending

on the nature of disability, will make every endeavor to provide alternative suitable

employment for the employee. In such case, Grameenphone will extend possible support

to the employee in the form of monetary assistance. This payment depends on the

duration of the disability and the benefit provisions are covered under insurance policy of

Grameenphone.

DEATH BENEFIT

If a confirmed employee dies under normal circumstances, the Company will pay twenty four

month’s gross salary to the legal heirs of the deceased. If an employee dies by accident while

on duty, the legal heirs will be paid 24 month’s gross salary by Insurance Company.

Death benefits will not apply if death is caused by suicide, during taking part in political

activities or by criminal prosecution.

vi) INCENTIVES:

Grameenphone adjusts employee's salary in a number of situations. This is one type of

benefit being offered to the deserving employees with a view to recognizing their best

services rendered to the Company and thus keep their morale high. Regarding approval of

Increment, Company's discretion is vital. Obviously, the basis is performance and any other

relevant factors that the company deems fit to be given due consideration.

PERFORMANCE INCREMENT

An employee will receive salary increment in case he/she demonstrates excellent

performance throughout the performance year and is recommended for increment by

immediate supervisor according to Performance Appraisal Process of the Company.

INCREMENT DURING CONFIRMATION

At the time of confirmation, salary increment may be approved by HR Director based on the

recommendation of Director/ Divisional Head. The concerned Head/Director proposes for

increment with proper justification and HR Director, upon review of the justification, finally

approves increment during confirmation. This type of increment may be considered for

excellent performance during probationary period.

EXTRA HOUR ALLOWANCE

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Extra Hour Allowance will be applicable for the following managers in case they work extra

30 hours or more in a month:

DM/DSE or equivalent positions: Tk. 6000

Manager/SE or equivalent positions: Tk. 8000

The Extra Hour Allowance will be claimed upon submitting prescribed allowances form duly

endorsed by immediate supervisor and approved by Department/Divisional.

CHAPTER-4

CONCLUSIONS & RECOMMENDATION

Job evaluation is a powerful tool in the compensation and benefits specialist's repertoire.

Effective job evaluation helps to gather information to develop job descriptions that meet the

changing needs of an organization. By implementing a successful job evaluation, an

organization can develop an equitable compensation plan and attract and retain high-

performing and talented employees.

Compensation is what an employee receives in exchange for his/her physical and mental

works, and contribution to the company. Compensation does not represent only salary but a

wide range of benefits and service are part of the total compensation package. Grameenphone

wishes to pay rewarding and competitive salaries to attract, retain and motivate competent

and skilled employees at all levels of the Company. By rewarding and competitive salaries

we mean that each employee should be rewarded in accordance with:

What the post requires,

How skilled the employee is and

What the market pays for work of the same type.

Grameenphone believes that regardless of what workplace studies reveal, working is about

compensation. Working can be about much more, too, but the bottom line for people is that

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their work must pay their bills. Employees desire reasonable, viable, and market-responsive

salaries. Compensation is the visible demonstration that an employee's work is valued.

Consequently, effective compensation is one of an employer's most important and powerful

communication tools that Grameenphone demonstrates very well by paying the most

competitive and highest remuneration to the employees as compared to the other telecom

operators. However, the only recommendation for Grameenphone is to reduce the call rate as

it also disturbs the employees.

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