investment on human resource- in telecommunication sector

72
Investment on Human Resource- In Telecommunication Sector Introduction With the rapidly changing economic environment and recent trends in internationalization, liberalization, and globalization, the structure of traditional industries has quickly transformed from being labor- intensive and low technology-based to being knowledge-intensive and high technology based. In the globalized economy, companies realize that they can no longer use labor cost reduction methods to enhance the competitiveness of their products in the international market. Instead, competitiveness is enhanced through innovations related to products, production processes, customers and the market. All of these innovations originate from people. Therefore, in addition to the pursuit of market share, global enterprises must enhance their share of human talent. Thus, companies must broaden their focus from the simple pursuit of capital productivity to the accumulation and training of human resources, which can improve enterprises and create competitive advantage. Human resources must be based on the needs of the enterprise and should be seen as highly valuable assets. Human resource departments should cooperate fully with other departments to maximize the efficiency of their resource utilization and management, thus achieving the goal of their business organizations. Human resource management is one of the most important features of business. Its importance for future organizational development has gradually received recognition. Because the current business environment faced by enterprises is rapidly changing, human resources are important assets, and human resources management plays an important role in the organization because of this. Human resources management involves using manpower planning, education and training systems, performance evaluation and other personnel activities, and makes effective use of human resources within the organization to improve the performance and development potential of the organizations’ members. Through these activities, it can effectively achieve organizational goals and increase the core competitiveness of the organization. After an organization commits to human resource management, its performance is measured in terms of the achievement of targeted goals at various levels. For a business to develop successfully, it must have a strong talent pool in addition to having adequate funding, equipment and technology.

Upload: zareen-aabedin

Post on 23-Mar-2016

223 views

Category:

Documents


3 download

DESCRIPTION

 

TRANSCRIPT

Page 1: Investment on Human Resource- In Telecommunication Sector

Investment on Human Resource- In Telecommunication Sector

Introduction

With the rapidly changing economic environment and recent trends in internationalization, liberalization, and globalization, the structure of traditional industries has quickly transformed from being labor-intensive and low technology-based to being knowledge-intensive and high technology based. In the globalized economy, companies realize that they can no longer use labor cost reduction methods to enhance the competitiveness of their products in the international market. Instead, competitiveness is enhanced through innovations related to products, production processes, customers and the market. All of these innovations originate from people. Therefore, in addition to the pursuit of market share, global enterprises must enhance their share of human talent. Thus, companies must broaden their focus from the simple pursuit of capital productivity to the accumulation and training of human resources, which can improve enterprises and create competitive advantage.

Human resources must be based on the needs of the enterprise and should be seen as highly valuable assets. Human resource departments should cooperate fully with other departments to maximize the efficiency of their resource utilization and management, thus achieving the goal of their business organizations. Human resource management is one of the most important features of business. Its importance for future organizational development has gradually received recognition. Because the current business environment faced by enterprises is rapidly changing, human resources are important assets, and human resources management plays an important role in the organization because of this. Human resources management involves using manpower planning, education and training systems, performance evaluation and other personnel activities, and makes effective use of human resources within the organization to improve the performance and development potential of the organizations’ members. Through these activities, it can effectively achieve organizational goals and increase the core competitiveness of the organization. After an organization commits to human resource management, its performance is measured in terms of the achievement of targeted goals at various levels.

For a business to develop successfully, it must have a strong talent pool in addition to having adequate funding, equipment and technology. Manpower is the basis of competitive advantage. The biggest challenge facing business managers today lies in developing an effective assessment system to evaluate their ability to cultivate high quality manpower to improve organizational power and their ability to manage human resources as effectively as possible. Human resources managers should not ignore these important issues. Along with the development of human resources management, organizations increasingly require a comprehensive assessment of the contribution of human resources. Return on investment (ROI) is a powerful, comprehensive assessment tool that can evaluate the value and contributions of human resources activities, providing compelling data.

Incorporating training that develops employee toward long-term career goals can also promote greater satisfaction. Training promotes job satisfaction so, more training more satisfaction, higher productivity, less turnover and more dedication to toward the targeted performance and organizational goals.

If we don’t go for investing in Human Resources and consider the cost of turnover then with one fewer worker, the company’s productivity slips, sales decline, current workers need to pay more hours toward the situation, need to find a replacement, spend time screening and interviewing applicants, then train up cost for the new employee. So, the company needs to bear high cost for this situation. And here not only that a company need to bear 1.5-2.5 times yearly loss if an experienced or asset employee leaver the organization.

Page 2: Investment on Human Resource- In Telecommunication Sector

Ex: A talent employee whose basic salary 1, 00,000 taka per month.

Then 1,00,000 * 12 = 12,00,000 * 2.5 = 30,00,000 Direct Financial loss.

Indirect Loss is the expertise, experience which belongs to that particular employee. There is also loss of 1-2 years for that reason because the new employee cannot perform day to day.

So, for the employee development and make them as an asset for the company, to increase their productivity and to reach the organizational goal more efficiently the company needs to invest in Human Resources as the form of training and others motivational tools.

With the huge investment in developing training strategies and programmers, the question is no longer whether organizations should train or not, but rather it is about whether or not training is worthwhile and effective (Mann 1996).

T&D is the most important subsystem or element of human resource development. It concerns increasing, improving, enhancing and modifying employees', and managers' skills, abilities, capabilities and knowledge to enable current and future jobs to be more effectively conducted. These desirable achievements are likely to increase an individual's as well as an organist’s growth and performance.

Generally, there are two main ways for conducting T&D programs.

First, in house T&D designed initiatives that are conducted within the organization, which could be directly on the job experience.

A second way for conducting T&D programs is off the job or out of house T&D designed that is conducted outside the organizations through external providers who will be responsible for evaluating T&D effectiveness through many objectives.

Research Methodology

Sample size: The research has proposed to respondents who are working in banking sector and they were selected as the sample for the study.

Source of data: The study based on both primary and secondary data.

Primary data: The primary data were collected through structured questionnaire.

Secondary data: The required secondary was collected from books, news paper and website.

Data collection technique: The questionnaire has been designed and supplied to the respondents of collecting primary data from the employees.

Hypothesis

We have to show in our research paper Investment in Human Resource in Telecommunication sector in Bangladesh. In here, we are surveyed Six companies. Six of them are employee or officer of the telecom sector. When we are surveyed we learn so many things like the culture, environment of the organization. We notice training and development practice level is vary from organization to organization. It’s also important to mention that some responder is not frank. But beside all of this we finding the level of investment on training and development practice on telecom sector in Bangladesh and showing it graphically

Literature Review

Page 3: Investment on Human Resource- In Telecommunication Sector

Evaluation, Training and Development Handbook approached its, evaluation process in a more logical way. The author emphasized that while evaluating training, instead of just studying the reactions of the trainees, the study could be carried out in four different levels viz., i.e., reaction, learning, behavior and results. The author’s guidelines and discussions on each level of evaluation of training are worth mentioning (Donald L. Kirkpatrick (1997)).

Management Training-the Real Objectives views that while embarking upon a management program, the real objective must be to focus on the individual manager, not the position in the company. The author's discussion on training needs analysis i.e., about core competencies, job profiling and identification of competencies gaps-either against core competencies for individuals or against job profiles for generic roles is worth mentioning (Jane Richards (1997)).

Role of investing on Training &Development in Human Resources is another work of relevance. In this, the authors concluded that an organization should have well-defined training policy as well as training manual and training should be made an ongoing process. Regarding the executive development programs the authors have concluded that, these programs have been found to be useful in improving the productivity, efficiency and effectiveness of managers. The authors have suggested that these programmes should be included as an integral part of the training program (Shishupal Singh Badhu and Karunesh Saxena (1999). More than ever, business is investing in training and development. He contends that companies seem to realize that a well-trained workforce is the key to competitiveness (ASTD, 1996). The more organizations seek excellence, the more employees’ training and development becomes imminent.

In contemporary organizations, information dissemination by itself leads to little or no results. Investing in Human Resource is usually aimed at solving significant problems as we are suppose to use it as a key requirement for ensuring that any training which takes place is based on proper analysis of its contribution to the effectiveness and efficiency of an organization. Training has been seen by scholars as an aid in adjusting to work environment which is designed to increase the capacity of individual or group in contributing to the attainment of the organizational goals (American Society for Training and Development (ASTD) president and Chief Executive Officer).

Human Resource Management

Human resource management (HRM or simply HR) is the management of an organization's workforce, or human resources. It is responsible for the attraction, selection, training, assessment, and rewarding of employees, while also overseeing organizational leadership and culture, and ensuring compliance with employment and labor laws. In circumstances where employees desire and are legally authorized to hold a collective bargaining agreement, HR will typically also serve as the company's primary liaison with the employees' representatives (usually a labor union).

HR is a product of the human relations movement of the early 20th century, when researchers began documenting ways of creating business value through the strategic management of the workforce. The function was initially dominated by transactional work such as payroll and benefits administration, but due to globalization, company consolidation, technological advancement, and further research, HR now focuses on strategic initiatives like mergers and acquisitions, talent management, succession planning, industrial and labor relations, and diversity and inclusion.

Definition of Human Resource

We often hear the term Human Resource Management, Employee Relations and Personnel Management used in the popular press as well as by Industry experts. Whenever we hear these terms, we conjure images of efficient managers busily going about their work in glitzy offices. In this article, we look at the question “what is HRM?” by giving a broad overview of the topic and introducing the readers to the practice of HRM

Page 4: Investment on Human Resource- In Telecommunication Sector

in contemporary organizations. Though as with all popular perceptions, the above imagery has some validity, the fact remains that there is much more to the field of HRM and despite popular depictions of the same, the “art and science” of HRM is indeed complex. We have chosen the term “art and science” as HRM is both the art of managing people by recourse to creative and innovative approaches; it is a science as well because of the precision and rigorous application of theory that is required.

As outlined above, the process of defining HRM leads us to two different definitions. The first definition of HRM is that it is the process of managing people in organizations in a structured and thorough manner. This covers the fields of staffing (hiring people), retention of people, pay and perks setting

Management, performance management, change management and taking care of exits from the company to round off the activities. This is the traditional definition of HRM which leads some experts to define it as a modern version of the Personnel Management function that was used earlier.

The second definition of HRM encompasses the management of people in organizations from a macro perspective i.e. managing people in the form of a collective relationship between management and employees. This approach focuses on the objectives and outcomes of the HRM function. What this means is that the HR function in contemporary organizations is concerned with the notions of people enabling, people development and a focus on making the “employment relationship” fulfilling for both the management and employees.

These definitions emphasize the difference between Personnel Management as defined in the second paragraph and human resource management as described in the third paragraph. To put it in one sentence, personnel management is essentially “workforce” centered whereas human resource management is “resource” centered. The key difference is HRM in recent times is about fulfilling management objectives of providing and deploying people and a greater emphasis on planning, monitoring and control.

Whatever the definition we use the answer to the question as to “what is HRM?” is that it is all about people in organizations. No wonder that some MNC’s (Multinationals) call the HR managers as People Managers, People Enablers and the practice as people management. In the 21st century organizations, the HR manager or the people manager is no longer seen as someone who takes care of the activities described in the traditional way. In fact, most organizations have different departments dealing with Staffing, Payroll, and Retention etc. Instead, the HR manager is responsible for managing employee expectations vis-à-vis the management objectives and reconciling both to ensure employee fulfillment and realization of management objectives.

In conclusion, this article has briefly touched upon the topic of HRM and served as an introduction to HRM. We shall touch upon the other topics that this field covers in other articles.

Duty of Human Resource

In startup companies, HR's duties may be performed by a handful of trained professionals or even by non-HR personnel. In larger companies, an entire functional group is typically dedicated to the discipline, with staff specializing in various HR tasks and functional leadership engaging in strategic decision making across the business. To train practitioners for the profession, institutions of higher education, professional associations, and companies themselves have created programs of study dedicated explicitly to the duties of the function. Academic and practitioner organizations likewise seek to engage and further the field of HR, as evidenced by several field-specific publications.

Role of HRM

Page 5: Investment on Human Resource- In Telecommunication Sector

Before investing in Human Resource at first one has to understand the importance of HR in the organization.The main goals / responsibilities of HRM are:• To retain low employee turnover rate by inspiring people to work for the company• To attract new employees• To contribute to employee development

To achieve these goals, Human Resources Management trains and motivates the employees by communicating ethical policies and socially responsible behavior to them. In doing so, it plays a significant role in clarifying the organization's problems and providing solutions, while making employees working more efficiently.

On the other hand, challenges do not cease for the HRM. Modern organizations can survive in the dynamic, competitive environment of today only if they capitalize on the full potential of each employee. Unfortunately, many companies have not understood the importance of the human capital in successful operations. The recruitment and selection of the best employees is a very difficult obligation. Even companies that are voted in the top-ten places to work at, often endure long periods of hard work to realize that human element is all an organization should care about.

New challenges arise even now for the organization, and it is certain that new challenges will never cease to emerge. Therefore, the use of proper Human Resources techniques is a really powerful way for organizations to overcome these challenges, and to improve not only their quantitative goals but also their organizational culture, and their qualitative, cognitive aspects.

Importance of HRM

We have discussed the basic concept of HRM and the ways in which it helps the organization meet its goals. In this article, we discuss the reasons for organizations to have a HRM strategy as well as the business drivers that make the strategy imperative for organizational success. It is a fact that to thrive in the chaotic and turbulent business environment, firms need to constantly innovate and be “ahead of the curve” in terms of business practices and strategies. It is from this motivation to be at the top of the pack that HRM becomes a valuable tool for management to ensure success.

Strategic Management and HRM

As discussed in the articles on modern day HRM practices, there is a need to align organizational goals with that of the HR strategy to ensure that there is alignment of the people policies with that of the management objectives. This means that the HR department can no longer be viewed as an appendage of the firm but instead is a vital organ in ensuring organizational success. The aims of strategic management are to provide the organization with a sense of direction and a feeling of purpose. The day when the HR manager was concerned with administrative duties is over and the current HRM practices in many industries are taken as seriously as say, the marketing and production functions.

Importance of HRM for Organizational Success

The practice of HRM must be viewed through the prism of overall strategic goals for the organization instead of a standalone tint that takes a unit based or a micro approach. The idea here is to adopt a holistic perspective towards HRM that ensures that there are no piecemeal strategies and the HRM policy enmeshes itself fully with those of the organizational goals. For instance, if the training needs of the employees are simply met with perfunctory trainings on omnibus topics, the firm stands to lose not only from the time that the employees spend in training but also a loss of direction. Hence, the organization that takes its HRM policies seriously will ensure that training is based on focused and topical methods.

Page 6: Investment on Human Resource- In Telecommunication Sector

In conclusion, the practice of HRM needs to be integrated with the overall strategy to ensure effective use of people and provide better returns to the organizations in terms of ROI (Return on Investment) for every rupee or dollar spent on them. Unless the HRM practice is designed in this way, the firms stand to lose from not utilizing people fully. And this does not bode well for the success of the organization.

Scope of Human Resource Management

Human resources are undoubtedly the key resources in an organization, the easiest and the most difficult to manage! The objectives of the HRM span right from the manpower needs assessment to management and retention of the same. To this effect Human resource management is responsible for effective designing and implementation of various policies, procedures and programs. It is all about developing and managing knowledge, skills, creativity, aptitude and talent and using them optimally.

Human Resource Management is not just limited to manage and optimally exploit human intellect. It also focuses on managing physical and emotional capital of employees. Considering the intricacies involved, the scope of HRM is widening with every passing day. It covers but is not limited to HR planning, hiring (recruitment and selection), training and development, payroll management, rewards and recognitions, Industrial relations, grievance handling, legal procedures etc. In other words, we can say that it’s about developing and managing harmonious relationships at workplace and striking a balance between organizational goals and individual goals.The scope of HRM is extensive and far-reaching. Therefore, it is very difficult to define it concisely. However, we may classify the same under following heads:

HRM in Personnel Management: This is typically direct manpower management that involves manpower planning, hiring (recruitment and selection), training and development, induction and orientation, transfer, promotion, compensation, layoff and retrenchment, employee productivity. The overall objective here is to ascertain individual growth, development and effectiveness which indirectly contribute to organizational development.

It also includes performance appraisal, developing new skills, disbursement of wages, incentives, allowances, traveling policies and procedures and other related courses of actions.

HRM in Employee Welfare: This particular aspect of HRM deals with working conditions and amenities at workplace. This includes a wide array of responsibilities and services such as safety services, health services, welfare funds, social security and medical services. It also covers appointment of safety officers, making the environment worth working, eliminating workplace hazards, support by top management, job safety, safeguarding machinery, cleanliness, proper ventilation and lighting, sanitation, medical care, sickness benefits, employment injury benefits, personal injury benefits, maternity benefits, unemployment benefits and family benefits.

It also relates to supervision, employee counseling, establishing harmonious relationships with employees, education and training. Employee welfare is about determining employees’ real needs and fulfilling them with active participation of both management and employees. In addition to this, it also takes care of canteen facilities, crèches, rest and lunch rooms, housing, transport, medical assistance, education, health and safety, recreation facilities, etc.

HRM in Industrial Relations: Since it is a highly sensitive area, it needs careful interactions with labor or employee unions, addressing their grievances and settling the disputes effectively in order to maintain peace and harmony in the organization. It is the art and science of understanding the employment (union-

Page 7: Investment on Human Resource- In Telecommunication Sector

management) relations, joint consultation, disciplinary procedures, solving problems with mutual efforts, understanding human behavior and maintaining work relations, collective bargaining and settlement of disputes.

The main aim is to safeguarding the interest of employees by securing the highest level of understanding to the extent that does not leave a negative impact on organization. It is about establishing, growing and promoting industrial democracy to safeguard the interests of both employees and management.

The scope of HRM is extremely wide, thus, cannot be written concisely. However, for the sake of convenience and developing understanding about the subject, we divide it in three categories mentioned above.

Processes in Human Resource Management

The efficient designing of these processes apart from other things depends upon the degree of correspondence of each of these. This means that each process is subservient to other. You start from Human resource Planning and there is a continual value addition at each step. To exemplify, the PMS (performance Management System) of an organization like Infosys would different from an organization like Walmart. Lets study each process separately.Human Resource Planning: Generally, we consider Human Resource Planning as the process of people forecasting. Right but incomplete! It also involves the processes of Evaluation Promotion and Layoff.

Recruitment: It aims at attracting applicants that match a certain Job criteria.

Selection: The next level of filtration. Aims at short listing candidates who are the nearest match in terms qualifications, expertise and potential for a certain job.

Hiring: Deciding upon the final candidate who gets the job.

Training and Development: Those processes that work on an employee onboard for his skills and abilities upgradation.

Employee Remuneration and Benefits Administration: The process involves deciding upon salaries and wages, Incentives, Fringe Benefits and Perquisites etc. Money is the prime motivator in any job and therefore the importance of this process. Performing employees seek raises, better salaries and bonuses.

Performance Management: It is meant to help the organization train, motivate and reward workers. It is also meant to ensure that the organizational goals are met with efficiency. The process not only includes the employees but can also be for a department, product, service or customer process; all towards enhancing or adding value to them.

Nowadays there is an automated performance management system (PMS) that carries all the information to help managers evaluate the performance of the employees and assess them accordingly on their training and development needs.

Employee Relations: Employee retention is a nuisance with organizations especially in industries that are hugely competitive in nature. Though there are myriad factors that motivate an individual to stick to or leave an organization, but certainly few are under our control.

Employee relations include Labor Law and Relations, Working Environment, Employee health and safety, Employee- Employee conflict management, Employee- Employee Conflict Management, Quality of Work Life, Workers Compensation, Employee Wellness and assistance programs, Counseling for occupational stress. All these are critical to employee retention apart from the money which is only a hygiene factor.

Page 8: Investment on Human Resource- In Telecommunication Sector

All processes are integral to the survival and success of HR strategies and no single process can work in isolation; there has to be a high level of conformity and cohesiveness between the same.

What Role Does Human Resource Management Play In a Business

The human resource function has gone from the traditional hire and fire role to a strategic partner at the table with finance, operations and other business centers that are not centers of profit for the organization. The job of HR, as is the job of all such departments, is to ensure that the business gets the most out of its employees. Another way to put this is that the human resource management needs to provide a high return on the business's investment in its people. This makes it a highly complex function - because it deals with not just management issues but human ones as well.

These 2 polarities are not always easy to balance and the human resource managers specifically try to maximize output from employees by instituting various schemes and policies. The following are some of the functions handled by the human resources team.

Handle compensation and rewards:-

Human resources are responsible for tying incentives and rewards to certain positions and roles in order to maximize performance levels. This is a strategic thinking task because it affects every single person in the organization and has to be planned separately for each position, depending on level, department and goals. Some jobs need to be more goal driven, such as sales so salary can be basic but commission can form the bulk of the remuneration, leading to more incentive to work effectively and close sales. Some firms tie top management's salary to stock price but this can be risky. It is up to human resources to structure this important aspect to everyone's satisfaction.

Recruitment:-

Another important task handled by the human resource function is the selection and retention of employees. If the right type of employees does not enter the organization, its days are numbered, because people drive almost any type of organization towards success.

Performance management:-

Regular, balanced and systematic appraisals must be administered consistently in order to evaluate the performance of each individual in the organization. This allows human resources to pinpoint the weaknesses of an individual's work style and the strengths. They can then share this information with the employee in order to affect a change in performance. This in turn will lead to more productivity and potentially better returns on human investment.

Point of contact:-

The human resource personnel form the point of contact for an employee with any type of difficulty or query about their remuneration or other aspects of employment with the business. It is essential for someone to be available to answer questions and provide guidance. This communicates to the employee that the business cares about his or her concerns and is available to address them.

Employee expectations:-

The human resources function fulfills a very important 'soft skill', unspoken task - that of balancing employee expectations and the organization's expectations. Both need to be addressed and aligned for a business to be successful and one with satisfied employees. Only a content and motivated employee will deliver good work, so it is the job of human resources to keep track of the expectations of the employee and those of the organization to ensure both are met simultaneously.

Page 9: Investment on Human Resource- In Telecommunication Sector

Why Invest in Human Resource

Investing in human resources is one of the greatest investments a firm can make. It has long been advocated that human resources should be viewed from an investment perspective. With this in mind the basic principle that all investments are made to provide a return on investment (ROI) must be utilized throughout all human resources management (HRM) decisions. Employees are at the heart of all firms regardless of the firm's technological level. As a result, HRM and senior managers must develop functional systems that promote employee performance. While the fundamentals might seem as obvious as offering higher wages or some other tangible factor, the solutions are not always so simplistic. The direction that HRM investments should take must focus on developing fundamental management and corporate values. In order to develop the desired corporate culture benefit programs can be utilized. For example; adoption assistance, paid training, stock options, tuitions reimbursement plans, and job enrichment and job satisfaction programs, can all work to define a company and its values. Furthermore, these programs can help to both attract and detract employees from the firm itself. Thus, the HRM programs are capable of working to not only develop a corporate culture, but to retain it as well. The financial impacts of any human resources investment program must be considered in order to determine if the program will provide a ROI. One method to determine the potential ROI of a human resource investment is the utility theory. The utility theory provides a means to determine an economic value of human resources programs and procedures. Thus it can be used to help identify specific programs and benefits that might provide greater returns through employee behavior prior to the actual implementation of the program in the workforce. While ROI is generally thought of as the primary calculator for returns; the not-for-profit think tank Human Capital Institute reports that firms should not be as focused on calculating precise ROI. Rather, they should focus on determining which investments will have the greatest impact on creating the organization's strategy. With the development of an organization's strategy also comes an opportunity to define, or re-define an organization's culture.

Perhaps the greatest accomplishment obtainable from HRM investments is the definition of an organizations culture. It is the corporate culture that defines both employee and employer expectations. Furthermore, if a firm successfully develops a strong culture they become more likely to achieve high levels of loyalty, comradely, cohesiveness, and organizational commitment from the employees. It is this strong culture of dedicated employees that provide one firms' competitive advantage over another. Employee loyalty, dedication, and job satisfaction provide primary factors that drive overall productivity, quality, innovation, design, and all other facets of business operations. However, to develop such dedication the culture must be developed. To do so the seven primary factors must be approached. These being; innovation and risk taking, attention to detail, outcome orientation, people orientation, team orientation, aggressiveness, and stability. By utilizing HRM investments in a strategic way corporations are able to manipulate its cultural definition to fit its desired needs. For example, if a high emphasis is desired for aggressiveness and innovation, rewards and promotion program can be developed for those that develop an exemplary item. In contrast, if a team oriented culture is desired a rewards program would be implemented for the most productive team. In either case, a rewards program exists to compensate the most successful people(s). However, both cases produce significantly different corporate cultures. The ability for such investments goes far beyond rewarding performance and is well utilized in developing a culture of stability. The perception of stability within the workforce is especially beneficial during periods of economic decline and or organizational restructuring. The perceptions of stability as offered by organizational culture will often help retain employees during recessionary periods. The fact that their employment is steady and secure will often overshadow the realities of voids in compensation adjustments and bonuses. Another notable aspect in corporate culture is its approach to acclimating new employees. The utilization of either investiture, the support of a newcomer's qualification, or divestiture, modification of existing characteristics to make a fit occur, varies from organization to organization. The utilization of investiture supports the hiring of candidates assumed to be good fits into the current culture and who already posses certain traits needed by the organization. Thus, they are hired and heavily supported by the

Page 10: Investment on Human Resource- In Telecommunication Sector

existing culture. In comparison, the utilization of divestiture allows for minimal skills to be retained and focuses on "molding" an employee into the assumed role.7Utilization of the former seems to offer the obvious benefit of obtaining an employee who is able to fill the necessary function almost immediately upon hire. While the latter requires an extensive investment in the acclimation of the new individual; it would seem that the organization would be more likely to develop an employee who is a direct fit into the organizations culture.

Investing in HR in Bangladesh

HR practice in Bangladesh is better than the past. In the past, HR role was concentrated to hiring firing and letter issuance-dispatching-filing stage. Now it has started to perform more than that. Such as Employee motivation, Employee development, employee retention, facilitating organizational development initiatives etc. and thus contributes to the achievement of organizational goals. These value added job has just begun in BD. For a good tomorrow, this is a starting point.

Employers have started to understand that the more they invest in human resources they more output is likely which lead them to emphasize on employee capability development. As such in many organizations, employee development is viewed as part of business plan. In these organizations, training budget is calculated as a percentage of total budgets of the organization. Bangladesh should pursue strategies followed by other countries in utilizing human resources to become a mid-income country by 2016, says the president of Swiss contact. In a recent interview with The Daily Star, Peter Grüschow says government policy support to the private sector, along with human resource development, is key to reaching the goal.“Bangladeshis are resilient and receptive to business opportunities. But a lack of proper information among entrepreneurs remains a hurdle.”

In future the overall HR practice is expected to be brighter in Bangladesh because more are feeling the necessity of an established HR department in the organizational structure. Employer-employee relationship is expected to improve. IT will be part of HR practices which will make HR actions, decision making process faster and accurate.

Determining Return on Investment for Human Resource Interventions

The ROI framework can be used to help companies begin to determine their organizations’ workforce training needs and opportunities, evaluate how to address them, and begin tome sure the results of these programs. Investing in human resources is one of the greatest investments a firm can make. Strategically placed investments in human resources will develop a more skilled, innovative, productive and loyal workforce thus providing an organization with a competitive advantage over a less progressive competitor. Investment in human capital offers both short and long term gains that help produce not only skilled, productive employees, but those that are both loyal and ethical. By investing in its human resources an organization can gain a competitive advantage within the market place. It has long been advocated that human resources should be viewed from an investment perspective. With this in mind the basic principle that all investments are made to provide a return on investment (ROI) must be utilized throughout all human resources management (HRM) decisions. The direction that HRM investments should take must focus on developing fundamental management and corporate values. For example; adoption assistance, paid training, stock options, tuitions reimbursement plans, and job enrichment and job satisfaction programs, can all work to define a company and its values. Furthermore, these programs can help to both attract and detract employees from the firm itself. Thus, the HRM programs are capable of working to not only develop a corporate culture, but to retain it as well.

The financial impacts of any human resources investment program must be considered in order to determine if the program will provide a ROI. One method to determine the potential ROI of a human

Page 11: Investment on Human Resource- In Telecommunication Sector

resource investment is the utility theory. The utility theory provides a means to determine an economic value of human resources programs and procedures. Thus it can be used to help identify specific programs and benefits that might provide greater returns through employee behavior prior to the actual implementation of the program in the workforce.

Perhaps the greatest accomplishment obtainable from HRM investments is the definition of an organizations culture. Furthermore, if a firm successfully develops a strong culture they become more likely to achieve high levels of loyalty, comradely, cohesiveness, and organizational commitment from the employees. It is the corporate culture that defines both employee and employer expectations. It is this strong culture of dedicated employees that provide one firms' competitive advantage over another. Employee loyalty, dedication, and job satisfaction provide primary factors that drive overall productivity, quality, innovation, design, and all other facets of business operations. However, to develop such dedication the culture must be developed. To do so the seven primary factors must be approached. These being; innovation and risk taking, attention to detail, outcome orientation, people orientation, team orientation, aggressiveness, and stability. By utilizing HRM investments in strategic way corporations are able to manipulate its cultural definition to fit its desired needs.

Companies can obtain a competitive advantage if they utilize strategic human resources investment practices. If the operation is a primary manufacturing facility investments such as group bonus pay-outs based on overall group performance, attendance, etc could provide an initial increase in output.

Ex: Basically office equipment’s are operated by Human in an organization. Here we can’t increase the productivity of the machine rather than change it. So, for increasing productivity we need to invest to buy new equipment. But we can increase the productivity of the employees by providing well training and other satisfactory events that is worth to them and that will make them dedicated to toward the organizational goal.

The importance of assessing the return on investment for HR activities and interventions in this article in a way that keeps the reader from hyperventilating.

Because of our experience and expertise in the field of managing people, there are some "givens" that we understand and take for granted, such as:

Treat people with respect to get respect in return

Provide education for newly promoted supervisors on management issues

Job satisfaction is highly correlated with organizational commitment

Unfortunately, some of our "givens" aren't as readily apparent to other leaders within our organization, and an intervention that to us seems intuitive isn't readily accepted by others. I've found a straightforward approach that resonates with CEO's, CFO's, and line managers that I'd like to share. The approach simply the R.O.I. approach, for Return on Investment.

Step 1: Clearly state the business problem. For example, our organization has a turnover rate of 32% for computer programmers.

Step 2: Calculate the cost of the business problem. For example, calculate the turnover costs for separation, replacement, and training for each computer programmer that left the organization last year.

Step 3: Identify a potential solution to the business problem based on historical data or benchmarking. For example, a study of exit interviews may reveal that key first-line supervisors aren't effective managers. A combination of training and one-on-one coaching may be a viable solution.

Page 12: Investment on Human Resource- In Telecommunication Sector

Step 4: Calculate the cost of the solution. For example, you could price having a consultant conduct a series of supervisory training workshops and the time for an HR staff person to develop and conduct a series of coaching sessions with individual supervisors.

Step 5: Implement the solution and monitor results. The planned for result, of course, would be lower turnover of computer programmers after three months, six months, and a year as a result of more effective supervision.

Step 6: Calculate the

improvement benefit with this formula:

Cost of business problem before implementing solution (Step 2)

(Minus)

Cost of business problem after implementing solution, less cost of solution

Example

$585,000 Annual t/o cost in 2000 for programmers

$300,000 - 50,000 Annual t/o cost in 2001, less solution cost

$235,000 Net Improvement Benefit

Step 7: Calculate the cost-benefit ratio as follows:

Net Improvement Benefit (Step 6) ¸ Cost of the Solution (Step 4)

$235,000/$50,000 = 4.7 to 1

For every $1 spent for a solution, $4.70 was saved.

If $50,000 sounds like a lot of money for an intervention, you can point out that for each dollar spent $4.70 in expenses was saved over the prior year. In other words, we are getting a return on our investment.

This approach can be used for any HR activity, as long as we documented (or can benchmark) the cost of a business problem.

Return on Investment Model

Training Need Analysis (TNA)\\

An analysis of training need is an essential requirement to the design of effective training. The purpose of training need analysis is to determine whether there is a gap between what is required foreffective

Determine the objectives of human resource activities

Design

Evaluationplan

Effect ofseparatinghumanresourceactivities

Data collectionduringimplementation

Data collectionafter theimplementation

Page 13: Investment on Human Resource- In Telecommunication Sector

performance and present level of performance.Training need analysis is conducted to determine whether resources required are available or not. It helps to plan the budget of the company, areas where training is required, and also highlights the occasions where training might not be appropriate but requires alternate action.

Training need arises at three levels:

Organizational Level – Training need analysis at organizational level focuses on strategic planning, business need, and goals. It starts with the assessment of internal environment of the organization such as, procedures, structures, policies, strengths, and weaknesses and external environment such as opportunities and threats.

After doing the SWOT analysis, weaknesses can be dealt with the training interventions, while strengths can further be strengthened with continued training. Threats can be reduced by identifying the areas where training is required. And, opportunities can be exploited by balancing

itagainstcosts.

For this approach to be successful, the HR department of the company requires to be involved in strategic planning. In this planning, HR develops strategies to be sure that the employees in the organization have the required Knowledge, Skills, and Attributes (KSAs) based on the future.

Individual Level – Training need analysis at individual level focuses on each and every individual in the organization. At this level, the organization checks whether an employee is performing at desired level or the performance is below expectation.

However, individual competence can also be linked to individual need. The methods that are used to analyze the individual need are:

Appraisal and performance review

Peer appraisal

Competency assessments

Subordinate appraisal

Client feedback

Customer feedback

Self-assessment or self-appraisal

Operational Level – Training Need analysis at operational level focuses on the work that is being assigned to the employees. The job analyst gathers the information on whether the job is clearly understood by an employee or not. He gathers this information through technical interview, observation, psychological test;

Page 14: Investment on Human Resource- In Telecommunication Sector

questionnaires asking the closed ended as well as open ended questions, etc. Today, jobs are dynamic and keep changing over the time. Employees need to prepare for these changes.

The Training Needs Assessment Process

Determine Agency Benefits of Needs Assessment - this part of the process will sell and help the decision makers and stakeholders understand the concept of the needs assessment. Needs assessment based on the alignment of critical behaviors with a clear agency mission will account for critical occupational and performance requirements to help your agency: a) eliminate redundant training efforts, b) substantially reduce the unnecessary expenditure of training dollars, and c) assist managers in identifying performance requirements that can best be satisfied by training and other developmental strategies. To go beyond learning and actually achieve critical behaviors the agency will also need to consider how required drivers will sustain desired outcomes.

Key steps include:

Identify key stakeholdersSolicit supportDescribe desired outcomes that will contribute to mission objectivesClarify critical behaviors needed to achieve desired outcomesDefine required drivers essential to sustain the critical behaviors

Plan - The needs assessment is likely to be only as successful as the planning.

Set goals/objectives for the needs assessmentEvaluate organizational (agency) readiness and identify key rolesEvaluate prior/other needs assessmentsPrepare project planInventory the capacity of staff and technology to conduct a meaningful training skills assessment and analysisClarify success measures and program milestones

Conduct Needs AssessmentObtain needs assessment data (e.g., review strategic plans, assess HR metrics, review job descriptions, conduct surveys, and review performance appraisals)

Analyze data

Define performance problems/issues: occupational group/individuals

Training climate – A good training climate comprises of ambience, tone, feelings, positive perception for training program, etc. Therefore, when the climate is favorable, nothing goes wrong but when the climate is unfavorable, almost everything goes wrong.

Trainees’ learning style – the learning style, age, experience, educational background of trainees must be kept in mind in order to get the right pitch to the design of the program.

Training strategies – Once the training objective has been identified, the trainer translates it into specific training areas and modules. The trainer prepares the priority list of about what must be included, what could be included.

Training topics – After formulating a strategy, trainer decides upon the content to be delivered. Trainers

Page 15: Investment on Human Resource- In Telecommunication Sector

break the content into headings, topics, ad modules. These topics and modules are then classified into information, knowledge, skills, and attitudes.

Sequence the contents – Contents are then sequenced in a following manner:

From simple to complex

Topics are arranged in terms of their relative importance

From known to unknown

From specific to general

Dependent relationship

Training tactics – Once the objectives and the strategy of the training program becomes clear, trainer comes in the position to select most appropriate tactics or methods or techniques. The method selection depends on the following factors:

Trainees’ background

Time allocated

Style preference of trainer

Level of competence of trainer

Availability of facilities and resources, etc

Page 16: Investment on Human Resource- In Telecommunication Sector

Support facilities – It can be segregated into printed and audio visual. The various requirements in a training program are white boards, flip charts, markers, etc

Constraints – The various constraints that lay in the trainers mind are:

Time

Accommodation, facilities and their availability

Furnishings and equipments

Budget

Design of the training, etc

Training Methods:

Training Methods - Standard procedures or approaches designed to help individuals or groups acquire the skills needed for specific activities or functions.

Methods of training - Here are various methods of training, which can be divided in to cognitive and behavioral methods. Trainers need to understand the pros and cons of each method its impact on trainees keeping their background and skills in mind before giving training.

Cognitive methods- Are more of giving theoretical training to the trainees. The various methods under Cognitive approach provide the rules for how to do something, written or verbal information, demonstrate relationships among concepts, etc. These methods are associated with changes in knowledge and attitude by stimulating learning.

The various methods that come under Cognitive approach are:

LECTURES DEMONSTRATIONS DISCUSSIONS COMPUTER BASED TRAINING (CBT)INTELLEGENT TUTORIAL SYSTEM(ITS)PROGRAMMED INSTRUCTION (PI)VIRTUAL REALITY

Behavioral methods- Are more of giving practical training to the trainees. The various methods under Behavioral approach allow the trainee to behavior in a real fashion. These methods are best used for skill development.

The various methods that come under Behavioral approach are:

GAMES AND SIMULATIONS BEHAVIOR-MODELING BUSINESS GAMES CASE STUDIES EQUIPMENT STIMULATORS IN-BASKET TECHNIQUE ROLE PLAYS

Both the methods can be used effectively to change attitudes, but through different means.

Page 17: Investment on Human Resource- In Telecommunication Sector

Each of the above methods describe below:

LECTURES-Lecturing method is one of the old and basic employee training methods used by many of the organizations. More and more training institutions are applying the lecture method for training. In this method the trainer is active whereas the trainees are passive. Though lecture method is not very much effective, some extent of informal lecture is inherent in the conduct of any training program to motivate trainees, provide explanation & analyze relevant exercises.

DEMONSTRATIONS -This method is a visual display of how something works or how to do something. As an example, trainer shows the trainees how to perform or how to do the tasks of the job. In order to be

more effective, demonstration method should be should be accompanied by the discussion or lecture method. To carry out an effective demonstration, a trainer first prepares the lesson plan by breaking the task to be performed into smaller modules, easily learned parts. Then, the trainer sequentially organizes those modules and prepares an explanation for why that part is required.

DISCUSSIONS -This method uses a lecturer to provide the learners with context that is supported, elaborated, explains, or expanded on through interactions both among the trainees and between the trainer and the trainees. The interaction and the communication between these two make it much more effective and powerful than the lecture method. If the Discussion method is used with proper sequence i.e. lectures, followed by discussion and questioning, can achieve higher level knowledge objectives, such as problem solving and principle learning.

BEHAVIOR-MODELING-Behavior Modeling uses the innate inclination for people to observe others to discover how to do something new. It is more often used in combination with some other techniques.

BUSINESS GAMES-Business games are the type of simulators that try to present the way an industry, company, organization, consultancy, or subunit of a company functions. Basically, they are based on the

set of rules, procedures, plans, relationships, principles derived from the research. In the business games, trainees are given some information that describes a particular situation and are then asked to make decisions that will best suit in the favor of the company. And then the system provides the feedback about the impact of their decisions.

CASE STUDIES- Case Studies try to simulate decision making situation that trainees may find at their work place. It reflects the situations and complex problems faced by managers, staff, HR, CEO, etc. The objective of the case study method is to get trainees to apply known concepts and ideologies and ascertain new ones. The case study method emphasize on approach to see a particular problem rather than a solution. Their solutions are not as important as the understanding of advantages and disadvantages.

EQUIPMENT STIMULATORS-Equipment simulators are the mechanical devices that necessitate trainees to use some actions, plans, measures, trials, movements, or decision processes they would use with equipment back on the their respective work place.

It is imperative that the simulators be designed to repeat, as closely as possible, the physical aspects of equipment and operational surroundings trainees will find at their work place. This is also called as physical fidelity of the simulation.

IN-BASKET TECHNIQUE- It provides trainees with a log of written text or information and requests, such as memos, messages, and reports, which would be handled by manger, engineer, reporting officer, or

administrator.

Page 18: Investment on Human Resource- In Telecommunication Sector

ROLE PLAYS-Role play is a simulation in which each participant is given a role to play. Trainees are given with some information related to description of the role, concerns, objectives, responsibilities, emotions, etc. Then, a general description of the situation, and the problem that each one of them faces, is given. For instance, situation could be strike in factory, managing conflict, two parties in conflict, scheduling vacation days, etc. Once the participants read their role descriptions, they act out their roles by interacting with one another.

On-the-job training

With on the job training, employees receive training whilst remaining in the workplace.The main methods of one-the-job training include:

Demonstration / instruction - showing the trainee how to do the job

Coaching - a more intensive method of training that involves a close working relationship between an experienced employee and the trainee

Job rotation - where the trainee is given several jobs in succession, to gain experience of a wide range of activities (e.g. a graduate management trainee might spend periods in several different departments)

Projects - employees join a project team - which gives them exposure to other parts of the business and allow them to take part in new activities. Most successful project teams are "multi-disciplinary"

Off-the-job training

This occurs when employees are taken away from their place of work to be trained.

Common methods of off-the-job training include:

Day release (employee takes time off work to attend a local college or training centre)

Distance learning / evening classes

Block release courses - which may involve several weeks at a local college

Sandwich courses - where the employee spends a longer period of time at college (e.g. six months) before returning to work

Sponsored courses in higher education

Self-study, computer-based training

Training Evaluation

Kirkpatrick's Four Level Evaluation Model

Perhaps the best known evaluation methodology for judging learning processes is Donald Kirkpatrick's Four Level Evaluation Model that was first published in a series of articles in 1959 in the Journal of American Society of Training Directors (now known as T+D Magazine). The series was later compiled and published as an article, Techniques for Evaluating Training Programs, in a book Kirkpatrick edited, Evaluating Training Programs (1975). However it was not until his 1994 book was published, Evaluating Training Programs, that the four levels became popular. Nowadays, his four levels remain a cornerstone in the learning industry.

Page 19: Investment on Human Resource- In Telecommunication Sector

While most people refer to the four criteria for evaluating learning processes as “levels,” Kirkpatrick never used that term, he normally called them “steps” (Craig, 1996). In addition, he did not call it a model, but used words such as “techniques for conducting the evaluation” (Craig, 1996, p294).

The four steps of evaluation consist of:

Step 1: Reaction - How well did the learners like the learning process?Step 2: Learning - What did they learn? (the extent to which the learners gain knowledge and skills)Step 3: Behavior - (What changes in job performance resulted from the learning process? (capability to perform the newly learned skills while on the job)Step 4: Results - What are the tangible results of the learning process in terms of reduced cost, improved quality, increased production, efficiency, etc.

Performance Appraisal ProcessWhat is the outcome of the Appraisal Process?

As outlined above, the outcome of the appraisal process is the grade that is decided for the employee as well as the salary hike or the bonus potential that is awarded to the employee. Typically, organizations divide the year in which the employee’s performance is evaluated into two cycles, one for deciding the salary hike and the other for deciding how much bonus he or she gets for the cycle. In this way, organizations ensure that there is no overlap in grading the employee and a fair and balanced evaluation is the desired outcome though this does not always happen in reality.

Indian Telecommunication Industry

Introduction

The telecom services have been recognized the world-over as an important tool for socio-economic development for a nation. It is one of the prime support services needed for rapid growth and modernization of various sectors of the economy. Indian telecommunication sector has undergone a major process of transformation through significant policy reforms, particularly beginning with the announcement of NTP 1994 and was subsequently re-emphasized and carried forward under NTP 1999. Driven by various policy initiatives, the Indian telecom sector witnessed a complete transformation in the last decade. It has achieved a phenomenal growth during the last few years and is poised to take a big leap in the future also.

Status of Telecom Sector

The Indian Telecommunications network with 621 million connections (as on March 2010) is the third largest in the world. The sector is growing at a speed of 45% during the recent years. This rapid growth is possible due to various proactive and positive decisions of the Government and contribution of both by the public and the private sectors. The rapid strides in the telecom sector have been facilitated by liberal policies of the Government that provides easy market access for telecom equipment and a fair regulatory framework for offering telecom services to the Indian consumers at affordable prices. Presently, all the telecom services have been opened for private participation.

Investment Opportunities and Incentives

An attractive trade and investment policy and lucrative incentives for foreign collaborations have made India one of the world’s most attractive markets for the telecom equipment suppliers and service providers.

No industrial license required for setting up manufacturing units for telecom equipment.

Page 20: Investment on Human Resource- In Telecommunication Sector

100% Foreign Direct Investment (FDI) is allowed through automatic route for manufacturing of telecom equipments.

Payments for royalty, lump sum fee for transfer of technology and payments for use of trademark/brand name on the automatic route.

Foreign equity of 74% (49 % under automatic route) permitted for telecom services - basic, cellular mobile, paging, and value added services, NLD, ILD, and ISPs - and global mobile personal communications by satellite.

Full reparability of dividend income and capital invested in the telecom sector. 

Trend in Tele-density

Tele-density in the country increased from 5.11% in 2003 to 52.74 % in March 2010. In the rural area teledensity increased from 1.49% in Mar 2003 to 24.31% in March 2010 and in the urban areas it is increased from 14.32% in Mar 2003 to119.45% in March 2010.This indicates a rising trend of Indian telecom subscribers.

 Rural Telephony Apart from the 200.77million fixed and WLL connections on March 2010 provided in the rural areas, 570000 uncovered VPTs have been provided as on March 2010. Thus, 96% of the villages in India have been covered by the VPTs. More than 3 lakh PCOs are also providing community access in the rural areas. Further, Mobile Gramin Sanchar Sewak Scheme (GSS) � a mobile Public Call Office (PCO) service is provided at the doorstep of villagers. At present, 2772 GSSs are covering 12043 villages. In addition, to provide Internet service, Sanchar Dhabas (Internet Kiosks) have been provided in more than 3500 Block Headquarters out of the total 6337 Blocks in the country. The target of 80 million rural connections by 2010 have already met during year 2008 itself. USOF subsidy support scheme is also being utilized for sharing wireless infrastructure in rural areas with about 19,000 towers by 2010.

Performance of telecom equipment manufacturing sector Because of Government policy, progress has been achieved in the manufacturing of telecom equipment in the country. There is a significant telecom equipment-manufacturing base in the country and there has been steady growth of the manufacturing sector during the past few years. The figures for production and export of telecom equipment are shown in table given below:

Rising demand for a wide range of telecom equipment, particularly in the area of mobile

Year Production Export

2002-03 14400 402

2003-04 14000 250

2004-05 16090 400

2005-06 17833 1500

2006-07 23656 1898

2007-08 41270 8131

2008-09 48800 11000

2009-10

50000

(Projected @ 18%)

13500

(Projected @ 25%)

Page 21: Investment on Human Resource- In Telecommunication Sector

telecommunication, has provided excellent opportunities to domestic and foreign investors in the manufacturing sector. The last two years saw many renowned telecom companies setting up their manufacturing base in India. Ericsson set up GSM Radio Base Station Manufacturing facility in Jaipur. Elcoteq set up handset manufacturing facilities in Bangalore. Nokia and Nokia Siemens Networks have set up their manufacturing plant in Chennai. LG Electronics set up plant of manufacturing GSM mobile phones near Pune. Ericsson launched their R&D Centre in Chennai. Flextronics set up an SEZ in Chennai. Other major companies like Foxconn, Aspcom, Solectron etc have decided to set up their manufacturing bases in India.

The Government has already set up Telecom Equipment and Services Export Promotion Council and Telecom Testing and Security Certification Centre (TETC). A large number of companies like Alcatel, Cisco have also shown interest in setting up their R&D centers in India.  With above initiatives India is expected to be a manufacturing hub for the telecom equipment.

OpportunitiesIndia offers an unprecedented opportunity for telecom service operators, infrastructure vendors, manufacturers and associated services companies. A host of factors is contributing to enlarged opportunities for growth and investment in telecom sector:

An expanding Indian economy with increased focus on the services sector Population mix moving favorably towards a younger age profile

Urbanization with increasing incomes

Investors can look to capture the gains of the Indian telecom boom and diversify their operations outside

developed economies that are marked by saturated telecom markets and lower GDP growth rates.

Inflow of FDI into India’s telecom sector during April 2000 to Feb. 2010 was about Rs 405,460 million. In addition, more than 8 per cent of the approved FDI in the country is related to the telecom sector.

Indian Telecommunications at a glance

(As on 31st March 2010)

Rank in world in network size 3rd

Tele-density (per hundred populations) 52.74

Telephone connection (In million)

Fixed 36.95

Mobile 548.32

Total 621.28

Village Public Telephones inhabited (Out of 5,93,601 uncovered villages)

5,69,385

Foreign Direct Investment (in million) (from April 4070

Page 22: Investment on Human Resource- In Telecommunication Sector

2000 till March 2010)

Licenses issued

Basic 2

CMTS 38

UAS 241

Infrastructure Provider I 219

ISP (Internet) 371

National Long distance 29

International Long Distance 24

Telecom sector in Bangladesh

The current uprising of information technology nowadays had opened up private investment potential on telecommunication industry for Bangladesh. BTTB (Bangladesh Telegraph & Telephone Board) is expanding communication facilities within the country with the use of modern technology. Communications outside of the country is also being expanded. Operations of private sector in rural telecommunications, radio tracking system, cellular telephones, and paging had been allowed in the country as well. BTTB had initiated to provide facilities of VSAT (Very Small Aperture Terminals) to private sectors. In addition, the local government of Bangladesh had granted licenses to two private telecommunication companies and four private operators of mobile telephone or cellular services.

The almost exponential growth in the Telecoms sector in Bangladesh in the last 5-10 years has had the same transformative impact on Bangladesh's economy as the growth of Ready Made Garments and Remittances. As well as being the largest contributor to Foreign Direct Investment and tax revenues, the catalytic effect of rapid mobile penetration on increasing the quality of life of tens millions of people has been significant.We would emphasize at the outset that the bulk of this report focuses on the Mobile Phone Operators given that they form the dominant part of the Telecoms sector by revenues, employment and coverage. However, we do provide a brief summary of Wimax, lnternet Service Providers (ISPs), Fixed Line Companies and other Telecoms players and we intend to provide fuller analysis in a future report.As of September 2010, the BTRC has reported that there are 65.14 million mobile subscribers in Bangladesh and with competition in the sector intensifying; one would expect the rate of growth to remain strong going forward.However, Bangladesh still lags a majority of other countries in the region in terms of mobile penetration; most notably Pakistan The potential to cross 100 m subscribers by 2013 is not unrealistic, particularly if the Government reduces the relatively high level of taxation on SIMs.

Recent M&A activity has also increased the competitive dynamics in the sector Bharti Airtel, India's largest Telecoms Company purchased a majority stake in Wand, the number 4 Bangladeshi player, in January 2010. There are strong expectations that Bharti will provide significant competition for the existing Top 3 of Grameenphone, Banglalink and Robi (formerly AKTEL ) by leveraging its experience in India in terms of rural penetration and its portfolio of VAS and data products. It also is expected to invest substantially in

Page 23: Investment on Human Resource- In Telecommunication Sector

improving network infrastructure having announced an agreement on 7 October 2010 with Ericsson and Huawei. The fact that Singtel, the 32% shareholder in Bharti, also owns 45% of number 5 operator Citycell, also suggests one prospective route to much anticipated industry consolidation.In terms of future industry challenges one of the immediate issues is one of regulatory uncertainty as the Government has not yet announced the renewal process or cost for the licenses of four (GP, Banglalink, Robi and City Cell) of the 6 Telcos that expire in 2011. In addition, there is a lack of clarity about the timing and process of 36 auction licenses. This needs to be resolved reasonably quickly if future investment plans by the existing Telcos are not to be delayed A particular concern is that with the 36 auction licenses in India generating S 14.7 bn in revenues for the Government of India, whether the Bangladesh government sets license renewal fees so high as to reduce the growth of 36 networks in Bangladesh. There is clearly, in our view, a balance between the revenue objectives and the developmental benefits of continued rapid mobile subscriber growth and internet/broadband penetration.

A broader challenge for the industry is one of maintaining revenue growth as Average Revenue Per User (ARPLUs) continue to decline. The next phase of mobile subscriber additions is likely to be focused on rural subscribers, who are more price sensitive than those in urban sectors.

There are four main areas we expect Telcos to look for revenue enhancement.

Firstly greater development, promotion and focus on Value Added Services and investment in a broader VAS 'ecosystem" perhaps with common applications platforms. However, entertainment, games and infotainment are also set to develop rapidly giver that the median age of Bangladesh's population is 23.3years with 65% under the age of 25.The second area that mobile companies are likely to increasingly focus on for new incremental revenues is in data. It is currently estimated that the 4-4.5 mn internet users in Bangladesh, with 90% accessing the internet via mobile based delivery systems such as GP's Edge and GPRS.

Secondly, we expect as part of the Digital Bangladesh initiative, the government will substantially reduce the wholesale cost of broadband. This reduction is likely to be largely passed on by Telco companies, which will support revenues as volumes increase. Clearly this will also require the development of more Bangladesh relevant/ local language content to stimulate demand.

A third major opportunity for all the Telecoms companies is to target the rapidly growing business segment by developing more focused Enterprise products. In India, the top 5% of mobile subscribers generate 25% of revenues, and large corporate are a major proportion of that. We expect the greater maturity and sophistication of Bangladeshi companies to offer new opportunities to those Telecoms companies that are able to offer customized products for marketing, distribution as well greater internationalization.

A fourth opportunity is convergence which, as a theme has had a profound effect on Telecoms markets in more developed countries, but has yet to have an impact on Bangladesh. However, we believe Telecoms companies have an opportunity to diversify revenues into new areas such as content development for data and VAS and even investment in media companies in Bangladesh. With the arrival of 36 and faster mobile-based data networks IPTV (Internet based TV) and 'I-Tunes" type music retail services is likely to become a bigger potential source of revenues given the growing significance of the youth market in Bangladesh.

We believe that at least one merger is likely in the next 12-18 months, namely Bharti, Airtel and City Cell. Aggregating spectrum is perhaps the key attraction for Short] to consider this. We also find it hard to see Teletalk, the government owned Telco company sustainably growing without either a JV with a large foreign Telco (there had been some talk of a Vietnamese Telecoms company being interested), or potentially a merger with either Robi or Banglalink. Overall, an industry where only one player, GP is

Page 24: Investment on Human Resource- In Telecommunication Sector

making a regular acceptable return on equity and the others are either losing money or are only marginally profitable, is an unsustainable equilibrium.

Mobile Phone Operators

There are 6 mobile phone operators in Bangladesh. These are:1. Grameenphone Ltd.: Branded as Grameenphone2. Sheba Telecom Ltd.: Branded as Banglalink3. Axiata Bangladesh Ltd: Branded as Robi4. Pacific Bangladesh Telephone Ltd.: Branded as Citycell5. Teletalk Bangladesh Ltd.: Branded as Teletalk6. Airtel Bangla Ltd. Branded as [Airtel Bangla|Airtel]

The number of mobile phone subscribers in Bangladesh as of February 2009 was 45.21 million. rising to 76.43 million at the end of June 201

Overview GrameenPhone

The company has so far invested more than BDT 10,700 crore (USD 1.6 Billion) to build the network infrastructure since its inception in 1997.It has invested over BDT 3,100 crore (USD 450 Million) during the first three quarters of 2007 while BDT 2,100 crore (USD 310 Million) was invested in 2006 alone. GrameenPhone is also one the largest taxpayers in the country, having contributed nearly BDT 7000crore in direct and indirect taxes to the Government Exchequer over the years. Of this amount, over BDT 2000 crore was paid in 2006 alone.

Since its inception in March 1997, GrameenPhone has built the largest cellular network in the country with over 10,000base situation in more than 5700 locations. Presently, nearly 98 percent of the country’s population is within the coverage area of the GrameenPhone network.

GrameenPhone was also the first operator to introduce the pre-paid service in September 1999. It established the first 24-hour Call-Center, introduce value-added services such as VMS, SMS, Fax and data transmission services, international roaming service, WAP, SMS-based push-pull services, EDGE, personal ring back tone and many other product and services.

The entire GrameenPhone nearly doubled its subscriber base during the initial years while the growth was much faster during the later years. It ended the inaugural year with 18,000 customers 30,000 by the end of 1998, 60,000 in 1999, 193,000 in 2000, 471,000 in 2001, 775,000 in 2002, 1.16 million in 2003, 2.4 million in 2004, 5.5 million in 2005, 11.3 million in 2006, and it ended 2007 with 16.5 million customers.

From the very beginning, GrameenPhone placed emphasis on providing good after-sales services. In recent years, the focus has been to provide after=-sales within a short distance from where the customers live. There are more than 600 GP Service Desks across the country covering nearly all upazilas of 61 districts. In addition, there are 81 GrameenPhone Centers in all the divisional cities and they remain open from 08:00am-08:00pm everyday including all holidays. GP has generated direct and indirect employment for a large number of people over the years. The company presently has more than 5,000 full, part-time and contractual employees. Another 100,000 people are directly dependent on GrameenPhone for their livelihood, working for the GrameenPhone dealers, retailers, scratch card outlets, suppliers, vendors, contractors and others.

Page 25: Investment on Human Resource- In Telecommunication Sector

In addition, the Village Phone Program, also started in 1997, provides a good income-earning opportunity to more than 280,000 mostly women Village Phone operators living in rural areas. The Village Phone Program is a unique initiative to provide universal access to telecommunications services in remote, rural areas. Administered by Grameen Telecom Corporation, it enables rural people who normally cannot afford to own a telephone to avail the service while providing the VP operators an opportunity to earn a living.

The Village Phone initiative was given the “GSM in the Community” award at the global GSM Congress Held in Cannes, France in February 2000. GrameenPhone was also adjudged The Best Joint Venture Enterprise of the Year at the Bangladesh Business Awards in 2002. GrameenPhone was presented with the GSM Association’s Global Mobile Award for ‘Best use of Mobile for Social and Economic development’ at the 3GSM World Congress held in Singapore, in October 2006, for its Community Information Center (CIC) project, and for its Health Line Service project at the 3GSM World Congress held in Barcelona, Spain, in February 2007.

GrameenPhone considers its employees to be one of its most important assets. GP has an extensive employee benefit scheme in place including Gratuity, Provident fund, Group Insurance, Family Health Insurance, Transportation facility, Day Care Center, Children’s Education Support, Higher Education Support for Employees, in-house medical support, and other initiatives.

GrameenPhone HR Policies & Practices

GrameenPhone is the pioneer in the field of human resource, management, employee care and competence development in Bangladesh. Grameenphone is currently employing approximately 5000 people of which 84% is under 31 years old. The employees are spread out in six office zones throughout the country, with Dhaka being largest with 3561 employees. Most of the staff has university backgrounds within fields as management, marketing, economics, finance and engineering.

In 1997 the number of expatriates working in the company was close to 90.Today,however,there are only five foreigners employed on a regular basis, and another five on time-limited contracts. Keep the government demands that a ratio of 1:20, expatriates to locals. The figures are therefore not only within the government requirement, but significantly so. The situation is supposedly a lot different in many of GrameenPhone’s competitor companies.

The turnover rate in 2006 was 8%,and a preliminary 4% so far for 2007.The number of resignations peaked in 2005 when new operators penetrated the market and offered higher salaries to Grameenphone employees, but this was still relatively low. One could argue that low turnover rates are a good indicator of a healthy work environment.

Training and Human Resource development

GrameenPhone has since 2005 been adopting the telenor Development Process (TDP).according to the annual report the aim of this process is to “Set direction, Manage performance and develop individual, Team and organizational capabilities to deliver business results.”

Page 26: Investment on Human Resource- In Telecommunication Sector

GrameenPhone offers employee training on several stages, in addition to a general introduction for new employees. At juniors’ management level, GrammenPhone in collaboration with the British Council offers in-house training in basic management skills and workshops.

Furthermore, management training at junior and middle levels is offered in collaboration with the Institute of Management. Finally, for senior management GrameenPhone offers a module based program in cooperation with Stockholm School of economics. This program is custom made for GrameenPhone.

Outside of these Standardized programs, we also offer 100 scholarships to employees who want to take an Executive Master of Business and Administration (EMBA) and covers 75% of the tution fees. This program is part time. The need for training is related to the job of each individual

Employee and mainly identified through the annual compulsory appraisal dialogue.

Being a part of the Telenor Group, GrameenPhone employees also benefit from the hands-on technology/know-how transfer of Telenor experts in different areas on a regular basis.

Our employees have the opportunity to participate in group-wide professional workshops and placements in Telenor affiliates to gain additional relevant experience in their respective areas of work.

Employee benefits

In addition to a relatively high salary, GrameenPhone employees are offered several benefits.

In an annual survey comparing 10 competitors and similar companies in other industries, GrameenPhone identifies the wage distribution and bases its own wage levels on those in the upper quartile. This yields a minimum monthly salary of 28000BDT (408) USD. The national average income for earners in non-agricultural sectors is 6000BDT(Bangladesh Burea of Statistics 2005).

As a part of the employee policy, GrameenPhone is also providing monthly education grants to children of all employees’ until age of 21.This grant is a fixed monthly sum for each child. Furthermore, these children can also apply for financial support to attend university.

In compliance with the local legislation, GrameenPhone is building a pension fund forits employees. In addition to the required minimum level, GrameenPhone also invests in provident funds.10percentage of the employee’s salary is paid on a monthly basis into the fund.

Participation in the fund is voluntary. Following five years of employment, the company invests in addition to 10%provided by the employee, the same amount into the fund for each individual. All regular employees are also entitled to a gratuity payment paid at the end of his/her service with the company and this is calculated based on the length of service.

All employees are entitled and covered by health and medical insurance. This also applies to family members. This coverage has also been known to apply to out-source.an example of this is that several drivers hurt in traffic accidents have been sent to Thailand and Singapore for medical treatment.

Code of Conduct

Upon entering the company, all employees must sign a code of conduct. The document presents guidelines for proper conduct and ethical behavior. It is divided into four parts:

Firstly, general guidelines describe the rationale behind this document, namely the importance of communicating corporate values and for employees to adopt them. This section includes broad, overarching topics such as human worth, working environment, health, loyalty, confidentiality and reporting/disclosure among others.

Page 27: Investment on Human Resource- In Telecommunication Sector

The second section refers to the relationship with customers, suppliers, competitors and public authorities. The main message here is that all stakeholders should be treated with respect and that unethical interaction, such as receiving expensive gifts and services are unacceptable.

The third section looks at the employee’s private interests and actions in relation to the company. Here political activism and other external duties are encouraged up to the level where it will not interfere with their work at GrameenPhone.

The last section emphasizes that all misconduct or indeed suspicions of such activity must be reported immediately. It ensures the employee that no reprisals will be undertaken towards them. In other words: whistle blowing is allowed and promoted.

The most important aspect of this document is its comprehensive approach to conduct. In relation to this point, it is important to note that it is mandatory for all GrameenPhone employees to sign a document agreeing to comply with this code.

Controlling the supply chain

GrameenPhone has according to the annual report (GrameenPhone 2007c),”implemented various policies and procedures for ensuring strong governance at the company level”. This was also highlighted in the interview with the HR director. Even out-sourced staff is offered training, insurance and benefits partly as regular employees. Furthermore, all suppliers are to entitle to respect, and the selection process for choosing suppliers is transparent for all parties involved. However, there are still some challenges, which need to be overcome in terms of both the supplying firms specifically and individuals employed through the supplier.

Standards for Health, Safety and Environment (HSE)

GrameenPhone has issued a manual for HSE work within the company. The manual is available in all sections of the company and applies equally to permanent, contract and temporary employees. The HSE policy is based on the corresponding policy in telenor with certain local adoptions. The telenor policy is subject to internal control by telenor ASA which in turn is then scrutinized by external auditors. This ensures that high standards are kept.

The manual offers a comprehensive outline of the responsibilities and duties of GrameenPhone and that of the individual employee. An important aspect of this is the medical consultancy and regular check-ups provided for GrameenPhone employees in collaboration with authorized medical centers. The manual offers an overview of the agreements with such centers and the employees are made aware of their location and services. Furthermore, the HSE guidelines apply to all stakeholders implying that external companies, such as suppliers have to follow the regulations as well.

The policy includes specific measurements statistics and strict procedures for inspection and reporting. All protective gear is described and prescribed and the closest supervisor is responsible.

Being one of the debt issuers at the establishment of GrameenPhone, the International Finance Corporation(IFC) has set strict demands for HSE policies. When GrameenPhone developed its HSE manual, the IFC placed it prominently on its homepage as a good model to follow. This could also be viewed as another indication that GrameenPhone is a pioneer in the field of HSE management.

Axiata Limited”

HISTORICAL BACKGROUND OF THE COMPANY

Page 28: Investment on Human Resource- In Telecommunication Sector

Robi Axiata Limited is a dynamic and leading countrywide GSM communication solution provider. It is a joint venture company between Axiata Group Berhad, Malaysia and NTT DOCOMO INC, Japan. Robi Axiata Limited, formerly known as Telekom Malaysia International (Bangladesh), commenced its operation in 1997 under the brand name Aktel among the pioneer GSM mobile telecommunications service providers in Bangladesh. Later, on 28th March, 2010 the company started its new journey with the brand name Robi.

Robi is truly a people-oriented brand of Bangladesh. Robi, the people's champion, is there for the people of Bangladesh, where they want and the way they want. Having the local tradition at its core Robi marches ahead with innovation and creativity.

To ensure leading-edge technology, Robi has the international expertise of Axiata and NTT DOCOMO INC. It supports 2G voices, CAMEL Phase II & III and GPRS/EDGE service with high-speed Internet connectivity. Its GSM service is based on a robust network architecture and cutting edge technology such as Intelligent Network (IN), which provides peace-of-mind solutions in terms of voice clarity, extensive nationwide network coverage and multiple global partners for international roaming. It has the widest International Roaming coverage in Bangladesh connecting 550 operators across 205 countries. Its customer centric solution includes value added services (VAS), quality customer care, easy access call centers, digital network security and flexible tariff rates.

With its strengths and competencies developed over the years, Robi aims to provide the best quality service experience in terms of coverage and connectivity to its customers all over Bangladesh. Together with its unique ability to develop local insights, Robi creates distinct services with local flavor to remain close to the hearts of its customer.

OBJECTIVE OF THE COMPANY

Robi Axiata Limited started its commercial operations as a GSM cellular phone operator with the objective of offering state-of-the-art and modern telecommunication services to the people of Bangladesh at competitive prices.

PURPOSE AND PRINCIPLES OF THECOMPANY

“is unique. Our new brand is people-centric. We exist because of them. Anything is now possible. Any new idea is apprecitated no matter where it comes from within the organization. It is all in our own hands now.”

To help people understand the idea mentioned above, the company described the new brand in terms of purpose and principles.

Purpose

The purpose statement is their ambition for future, to set a common direction for new brand, a framework for all their strategic planning.

Robi’s purpose is also to empower their customers. They claim that, “We are there for you, where you want and in the way you want, in order to help you develop, grow and make the most of your lives through our services.”

The new brand is here to help people to empower and enable themselves to make a better life.

They also believe that, “We will keep our promises and deliver. We will innovate, execute fresh ideas and, as a nationwide organization, we will be respectful of our customers and stakeholders.”

Principles

Page 29: Investment on Human Resource- In Telecommunication Sector

Principle statements define how people want to behave with each other in the organization. The statements are about how the organization will value customers, suppliers, and the internal community.

Robi also believes that no matter what they do to realize their purpose, they hold themselves accountable to the following Guiding Principles that the way for them. They are as follows: 1. being respectful towards everyone. 2. being trustworthy by action. Being passionate and creative in all we do. 3. Keeping things simple in the way we do things. 4. being ethical and transparent. 5. Demonstrating individual and collective ownership. 6. Practicing an open culture in communication and internal Emotional: Passionate, Creative, Respectful, and Open

Functional: Simple, Ethical, Transparent, and Ownership

DIFFERENT DIVISIONS AND DEPARTMENT OF ROBI

Robi Axiata Limited operates with following Divisions and Departments having its establishment in different locations at Dhaka, Chittagong and other regions of Bangladesh.

Divisions:

Finance Division Marketing Division Human Resource Division Information Technology Division Technical Division

Departments:

Administration Department Internal Audit Department Coordination Department Sylhet, Comilla, Cox’s Bazaar, Feni, Rajshahi and Barisal. Moreover, Regional Technical Offices are in Khulna, Sylhet, Bogra and Cox’s bazaar.

MARKET POSITION AND CUSTOMER BASE

Robi, formerly known as AKTEL, owned by Axiata (Bangladesh) Ltd, remained in the third position with 11.10 million customers. It added 2.25 million subscribers in last one year raising the total number of its customers to 11.10 millions.

Page 30: Investment on Human Resource- In Telecommunication Sector

Figure 1: Market Share of Mobile Operators

EMPLOYMENT OPPORTUNITIES AND FACILITIES OF ROBI

Robi views its people as the prime capital of the company. The company represents a world of opportunity, challenge and fulfillment. This is a performance driven organization, which believes that performance comes from belongingness and ownership and they always reward the performers in all aspects. Functional skills development focuses on developing & sharpening the technical skills of their people that they may be the best-in-class in their areas of expertise - technology, marketing, sales, finance, customer analytics, strategy, human resource, internal audit, regulatory & legal.

Robi cares about their people and their development. Here they will find opportunities for continued education and training. The organization is also working on the process and strategies to empower their people through leadership program. Robi is committed to help their people learn, develop & enhance their functional skills, leadership capabilities & personal effectiveness. Their leadership development focuses developing leaders who think before they act and act according to the values that the organization embraces. Along with that they run Group Accelerated Development Program and Opco (Operating Country) Development Program. They carefully design their training and development activities keeping in mind the industry’s best practices. They also offer international career for the employees through Open resourcing policy among the other operating countries of Axiata Ltd.

Robi Offers a market competitive rewards package that is designed to make employee feel as an integral part of the team and directly involved in the company's success. Their asset is their diversified workforce who is making the mark in the industry to create a unique workplace. Performance

Management System (PMS) helps the employee make the most of their working life at Robi. The process supports the employees in identifying and delivering against challenging goals that impact the organization. It helps the employee to plan how they will develop skills and leadership behaviors for their current position and for the years ahead. The company diversified workforce is the main asset of their organization. Robi believes diversity is one of the key factors for success in any organization and hence they focus in this area consciously.

THINGS ROBI DOES TO ATTRACT TOP QUALITY EMPLOYEES

It is HR’s vision to handhold the company, be its strategic partner, adding value in each step taken towards making Robi Axiata Limted the Employer of Choice. Robi engages their employees and imspire them to achieve excellence.

They provide Exposure To Their Employees

Robi Axiata Limited recognizes the necessity to engage with the educational institutions of the country, as they want to be the “Employer of Choice”. They aim to ally themselves with the best private and public universities of the country. Sponsoring career fairs and counseling sessions with graduating students they impart a flavor of the corporate world and provide the employees with an exposure to best practices. This helps them in procuring the top students by inviting them to their internship program.

They Enhance Their Employees

Robi’s policy is to hire the best talents in the job market and groom them to perform even better. The organization robust Performance Management System aids in identifying their talent, assessing their employees’ skill set and providing development initiatives in form of training and job rotation. Employees are evaluated which uphold their transparency.

The Performance Management System helps identify areas of improvement for each employee. Their Competence Development Unit does a training need analysis, coming up with a calendar of training sessions

Page 31: Investment on Human Resource- In Telecommunication Sector

that focus on the areas identified for improvement. Thus, they equip their employees with the required skills to achieve and enhance in their career.

They recognize the passion to perform in their employees. The group to be groomed into future leaders nurtures the top performers of the company. The Group Accelerated Development Program serve as a breeding ground for future leaders, giving their managers international exposure and propping them for global challenges where the employees would be given opportunities to serve an Operating Company within the Robi.

Moreover, the company also arranges for job rotations and assigns employees to projects so as to create breath to their careers as well. Such initiatives inspire employees to be creative and take ownership of responsibilities.

They Empower Their Employees.

At Robi, they empower to share their voice. Their introduction to CXO chat and blog sites provides the platform for employees to be heard. Moreover, their Employee Satisfaction index survey gauges the opinion in areas, which concern working environment and cultural issues. They respect the opinion of their employees and strive to accommodate their views so as to ensure a conduced work environment that thrives with passion and facilities performance. Moreover, they are particularly attentive to equipment requirements. Their employees are provided with necessary computers, phones and Internet connection so that the employees are connected to the world for professional needs and personal ease.

They Enrich Their Employees.

At Robi Axiata Limited, they aim to enrich the lives of their employees with targeted benefit packages that take off the burden of personal obligations. The benefits are designed in a manner to exemplify their concern for their employees’ well being not only in terms of life, but also in terms of living standard. Child support, determined hospitalization costs, transportation are few examples of benefits they provide.

They Ensure Their Employees

Maintaining the highest ethical standards and integrity in their operations is a crucial factor at Robi. Therefore, the company has introduced their Guiding Principles that is they expect their employees to embed in his or her mind and upholds in one’s responsibility. Their code of Ethics safeguards their ethical standards by clearly defining their way of working. With such systems in place they ensure that they do business with a conscience and safeguard their employees from exploitation.

It should be noted that all their employees are obliged to sign a Letter of Understanding (LOU) after reading the Code of Ethics. They expect their employees to exemplify the guiding principles in their work and regulate their actions by the stipulations in Code of Conduct.

SOME TERMS OF EMPLOYMENT AT ROBI

Probation

All employees recruited on a permanent basis have to undergo a period of six months as probationary period to ascertain their capability and suitability for employment and are judged with a performance appraisal at the end of fifth month. On successful completion of the probationary period employee is given a letter of confirmation. During probation period no benefit of provident fund or gratuity are accrued. In addition, employee is entitled to avail 50% of entitled annual leave during this period and seven days for medical leave during the period.

During probation, either party upon 24 hours notice may terminate employment and confirmed employees are required to give one-month notice for resignation or should give up one-month basic salary.

Punctuality

Page 32: Investment on Human Resource- In Telecommunication Sector

Robi is very particular about time. Employees are required to arrive at work before 9:00 am. In case of disregard of this rule, the action is treated as late and recorded in the Attendance Register accordingly. Similarly, if the employees leave the work without authorized permission before 5:45 pm is treated as indiscipline.

DURATION AND PROCEDURE OF LEAVES AT ROBI

Annual Leave

Management Annual Leave Entitlement General Manager 25 Working Days DGM & AGM 22 Working Days Senior Manager 20 Working Days Manager 18 Working Days Assistant Manager 16 Working Days Executive 14 Working Days Non Executive 14 Working Days

50% of the entitlement of the annual leave can be accumulated or carried forward to the next service year and rest can be lapsed if not availed.

Medical Leave Employee medical leave is entitled for 14 days for all level of executives. Employee must have to produce medical certificate for medical leave. There is no provision of accumulation of medical leave. Quarantine Leave Quarantine Leave is leave of absence from duty necessitated by orders not to attend office in consequence of the presence of infectious diseases in the person, family or household of an employee. The authority up to maximum grants such leave 15 working days. However, the employee concerned has to submit a medical certificate from a registered medical practitioner.

Accident Leave Employees who are injured by an accident occurred while on duty is allowed Accident Leave with full pay for the period required for full recovery and become fit to join duties. If the accident causes partial or full disablement and the joining to duties is uncertain, then Management is going to decide on accident.

Maternity Leave A female employee who has been employed for period of not less than ninety days during the nine months immediately preceding her confinement shall be granted ninety consecutive days maternity leave on full pay. Maternity leave shall be granted after twenty-eight weeks of pregnancy and application for maternity leave shall be made not less than two months prior to date on which it is desired that the maternity leave shall commence. Such entitlement applies for two times during her service with the company. Leave because of miscarriage prior to the twenty-eight week of pregnancy shall not be considered as maternity leave as medical leave.

Paternity Leave Male employees are entitled for three working days paternity leave. One employee can avail paternity leave up to two times during his tenure.

Compassionate Leave Employees are entitled for three working days compassionate leave in case of death of their parents, spouse and children to cope up with the shock.

Page 33: Investment on Human Resource- In Telecommunication Sector

Hajj Leave

Only permanent employees (service length minimum 2 years) can take Hajj Leave of 20 consecutive days (including holidays) for Holy Hajj with prior approval of the Management. An employee can avail Hajj Leave once in his or her service tenure with Robi.

Leave Without Pay The company may grant an employee, at its discretion, no pay leave on important personal ground upon approval of the divisional head, if the employee has exhausted his or her annual leave. Functional Heads are responsible to approve for such leave depending on the circumstances.

Compensatory day-off An employee when required to work on any weekly holiday or govt. holiday shall be given a substitute day off which should be taken within one month of that date or will be forfeited. Employees may take day off leave instead of any weekly or Government holiday if he or she works on that day for at least eight hours in one day. The leave must be taken within the following month and necessary documents (attendance register) must be produced for the approval. On the other hand, the employees will not be entitled for day off leave if they take holiday allowance for the day.

Encashment of annual leave If any employee’s leave application is rejected for two times in a year, he or she is eligible for applying for the leave encashment up to a maximum of ten days. The encashment is based only on Basic salary.

SALARY AND BENEFITS

Monthly salary is transferred to employee individual salary account each month with other allowances less deductions such as income tax, contributory provident fund etc. Each employee receives a monthly pay statement detailed gross pay and deduction. The Gross or Average amount of employees in various Grades are given below:

Allow ance

Allowances are paid with monthly take-home salary, namely house rent, medical conveyance and utility.

Festival Bonus

Robi usually awards two bonuses in a year on occasion of Eid or Christmas as Festival bonus. The amount is normally equals to the basic salary.

Position Grade Amount (Tk)

MD / CEO 32 Confidential

Chief Officers (CTO, CMO , CFO) 27 Confidential

General Manager 26 Confidential

Assistant General Manager (AGM) 25 250,000

Senior Manger 24 200,000

Manager 23 150,000

Deputy Manager (DM) 22 90,000

Senior Assistant Manager / Senior Engineer 21 60,000

Assistant Manager / Engineer 20 50,000

Senior Executive / Engineer 19 45,000

Executive / Assistant Engineer 18 40,000

Executive/Assistant Technician 17 35,000

Page 34: Investment on Human Resource- In Telecommunication Sector

Other Variable Bonus

Robi offers other variable bonuses like; performance bonus (related with individual performance) and company performance bonus (special bonus for company performance or success) to the employees.

Soft Furnishing Allowance

This allowance is paid as a part of house maintenance of the staffs. Only executive and above (permanent) are entitled for the allowance. This allowance is paid on yearly basis at the end of the year.

Job Level Yearly Allowance (Tk)

Top Management 20,000

Senior Management (DGM & AGM) 15,000

Manager 8,000

Assistant Manager 6,000

Executive 4,000

Overtime Allowance

Only Executives (Grade 17,18,19,20 and 21) and Non- Executive (Grade 1,2,3,4 this grade involves Building Assistant) are eligible for overtime. Maximum ceiling for overtime is 48 hours in a month (except Grade 1 and 2).

Shift Duty Allowance

Job Level Allowance Per Month (Tk) Assistant Manager 1600 Executives 1400 Non-Executive 500-800

Only those who are entitled to shifting duty are eligible for the allowance.

Holiday Allowance Job

Job Level 3-5 hours More than 5 hours Manager and Senior Manager Tk- 300 per day Tk 500 per day

Salary Review

Salary is reviewed periodically with consistent with the living standard and competitive salary package offered by other multinational organizations as Robi claims.

Provident Fund and Gratuity

The contribution in Provident Fund is 10 % of the basic salary from both sides, employee are eligible for company contribution after five years of membership of the fund. Employee is also entitled to a gratuity payment.

Group Life Insurance

Robi management has approved a group life insurance policy under which, death, permanent partial disability and permanent total disability are covered. Moreover, the insured amount for life is 36 times gross salary.

Child Birth Benefit

All regular employees are entitled for Child Birth Allowance as per stated below:

Page 35: Investment on Human Resource- In Telecommunication Sector

Manager and above: (Both employee and spouse) Tk 15,000 per delivery

Assistant Manager and below: (Both employee and spouse) Tk 10,000 per delivery.

Hospital Fund Policy

All employees are entitled for the benefit (all permanent employees and their families, all probationers and their families and all contractual employees and their families including Non Executives) as per the level pf emplacement or Grade. (Family means spouse and children up to 25 years old). An employee can claim for two-hospitalization cost per year. An employee should take prior approval from the Head of Human Resources in writing in advance of any pre-planned hospitalization. In case of emergency the employee is ask to inform the Human Resource. Immediately.

Hospitalization expense includes:

Consultation fees while admitted

Investigation expense (ECG, X-Ray, MRI, CT Scan etc) while admitted

Artificial limbs, eyes, casts, braces and crutches

Post hospitalization physiotherapy up to two sessions

Rental or wheel chair or hospital bed, if advised by physician

Ambulance service to and from the hospital

Treatment by Radiotherapy or Chemotherapy

Two follow up visits after discharge from hospital

Subsistence Allowance or Meal Allowance (Local)

An employee who is required to travel out station on company business beyond a radius of 33 Km. from his office will be entitled to subsistence allowance as follows:

If the work requires a stay of 24 Hours or more inclusive of travel time

Designation Rates (Tk)

Top Management 4,500

Senior Management (AGM, DGM) 1,200

Management (Manager) 1,000

Assistant Manager 800

Executive 700

Non-Executive 300-400

If the work requires a stay of 8 Hours or more but less than 24 Hours or more inclusive of travel time.

Designation Rates (Tk)

Top Management 800

Senior Management (AGM, DGM) 700

Management (Manager) 600

Assistant Manager 500

Executive 400

Page 36: Investment on Human Resource- In Telecommunication Sector

Non-Executive 180-250

Accommodation Allowance

An employee who is required to travel out station on company business beyond a radius of 33 Km from his office (within Bangladesh) and requires a stay of 24 hours or more shall be entitled for following claims:

a) Hotel Rental b) Rental Without Receipts

Daily Allowance for Overseas Travel

An employee traveling outside Bangladesh, on company business is paid Daily meal allowance.

An employee traveling outside Bangladesh, on company business is reimbursed on production of receipts for the Airport Charges, Tax and Transportation Expenses. The mode of transport using hired vehicle is approved first by the Managing Director. The airfares for such business trip or courses are as follows:

Designation Air Fare

Top Management Business

Senior Management (AGM, DGM) Economy

Management (Manager) Economy

Assistant Manager Economy

Executive Economy

Accommodation Allowance (Overseas)

An employee traveling outside Bangladesh, on company business is paid accommodation allowance

Hotel Rental with Receipt:

Actual cost for single deluxe (Top Management)

Actual cost for single room (Executive to Senior Management)

Transfer Reimbursement

The company pay a transfer allowance of Tk. 15,000/= for a married employee (Executive and above) and Tk. 9,000 /= for a single employee, for the inconvenience caused by such transfer from one station to other. Transfer allowance for non-executive is Tk. 9,000 /= (married) and Tk. 6,000 /= (single) respectively. Traveling allowances, Meal allowances and Accommodation allowances is paid according to company rules.

Transport and Traveling Allowance

Employees authorized to use his or her vehicle in performing the duty, is reimbursed transport expenses:

Description/ Vehicle Allowance

Motorcar Tk. 8 per Km

Motorcycle Tk. 4 per Km

Page 37: Investment on Human Resource- In Telecommunication Sector

Parking fees and toll charges Reimbursed upon submission of receipt

Wedding Loan

The company provides Interest free wedding loan for the confirmed permanent employee. Loan amount is three times Gross salary.

Meal Allowance

All confirmed regular employees are entitled for a monthly meal allowance as per their Job Grade which is payable with their salary.

Children Education allowance

All regular employees are entitled for Children Education Allowance up to maximum two children (age should be within 25 years). Allowance is payable with the monthly salary as per the employee Job Grade.

Gratuity

All confirmed regular employees are entitled for Gratuity as per stated below:

Years of Service Allowance After 5 years 1 last drawn basis for each completed

year After 8 years 1.5 last drawn basis for each completed

year After 10 years 2 last drawn basis for each completed

year Long Service Award For all confirmed regular employees the reward in the form of Gold Medal worth different values relating with time frame.

Leave Fare Assistance

All regular employees are entitled for Leave Fare Assistance on monthly basis as per their Job Grade which is payable with their salary.

CAREER DEVELOPMENT

In Robi employees’ career are developed through appraising their performances and providing with knowledge and skills through proper training and development programs.

Introduction

After joining, new employee is subjected to attend an introduction program. This program provides new employee with basic background information about employer, information about company rules and practices, organization’s products and services. HR Division conducts this new employee socialization program.

Performance Appraisal

To achieve the overall organization goal, each employee is assigned with his individual goal. A periodic (normally in the month of December) appraisal is conducted with the view to monitoring the employee performance and to find out the training need and developments of each employee. Good performers are awarded accordingly for their contribution to the organization.

Page 38: Investment on Human Resource- In Telecommunication Sector

Organizational Development

Robi Axiata Limited management gives immense emphasis on developing its Human Resources by allocating huge money with yearly training programs (both local and overseas training). Annual training calendar is drawn up consisting with the training need assessment of all members of the organization. In- house training is also arranged with Robi’s own facilitators. Usually trainees are sending to Sweden, Egypt, France, Malaysia, Indonesia and India for various training programs.

Promotion A systematic promotion policy is followed in terms of promoting the deserving employees in line with the succession plan. Promotion is given to an employee when there is vacancy in the higher position and the employee has the required skills, experience to undertake the job. Up gradation is also awarded based on performances and capability of the individuals.

MOTIVATION

As motivation is a prime factor to job satisfaction, Management is willing to take initiative by offering schemes:

Performance Bonus

Performance bonus is given to the good performers with accordance with the company rules and management discretions as recognition of one’s performance throughout the year.

Reward and recognition

Reward and Recognition policy is introduced to award the outstanding performers, best team performers and the best support staff.

SAFETY AND SECURITY

For confronting contingency or any possible accident in the work places, Robi offices contains fire extinguishers and first aid box and Robi is working to establish a comprehensive safety and security policy for safeguard of their lives and properties as well.

DISCIPLINE

Rob follows systematic methods (show cause, personal hearing, suspension, enquiry and punishment) while taking disciplinary action against any accused employee as per law of the land. The following acts or omissions shall be treated as misconduct for which Management may decide to take disciplinary action against any employee:

Willful insubordination or disobedience, whether alone or in combination with others, to any lawful or reasonable order of a superior or colleagues

Habitual absenteeism (unauthorized absent or desertion of duties)

Habitual late attendance

Habitual negligence or neglect of work

Theft, fraud or dishonesty in connection with the organizations business or property

Behavior causing severe damage to customer relations

Habitual breach of any law, rule, or regulation applicable to the organization

Page 39: Investment on Human Resource- In Telecommunication Sector

Resorting to illegal strike or ‘go slow’ or inciting others to resort to illegal strike or ‘go slow’.

Falsifying, tempering with, damaging or causing loss of official records

Possession or use of drugs, alcohol or illegal substances and drunkenness or gambling while on duty

Use of bad language

Riotous or disorderly behavior in the office premises or any act subversive of discipline

Frequent repetition of any act or an illegal gratification in connection with oneself or any other employees’ employment under the employer.

Punishment The measurement of punishment should be proportionate to the severity of the offence committed. The punishment could be follows:

a) Written Warning b) Suspension without pay for a period not exceeding seven working days c) Defer increment for a period not exceeding two years d) Degradation to any lower grade e) Dismiss the employee without notice f) Termination g) Impose any other lesser punishment other than (a) to (e)

Right of Appeal

An employee on whom any form of punishment is imposed as provided above shall have right of appeal to the Chief Executive Officer of the company within fourteen fays from the date of notification of punishment served on the employee.

Retrenchment

An employee whose service is terminated on ground of redundancy is entitled to a) one month salary for each completed years of service b) payment of outstanding annual leave day. The principle of “Last in First Out” is followed. In the event of vacancy arising within twelve months of the retrenchment, the company gives preference to applications from ex-employees declared redundant previously.

Medically Boarding Out When either an employee is incapable physically or mentally to undergo his or her job, management may discharge him or her from service upon recommendation of the Government Medical Board.

3.9.3 Retirement Optional Retirement Compulsory Retirement

Male 50 Years 58 Years Female 45 Years 58 Years

Until now, I have discussed about the facilities that Robi Axiata Limited provides to their employees in order to satisfy and sustain their good performing employees. In the farther chapters, these data are analyzed in details to get a clear picture of the Level of employee satisfaction at Robi Axiata Limited.

Over View of Banglalink.

Page 40: Investment on Human Resource- In Telecommunication Sector

Banglalink (Bengali: বাংলালিলংক), is the second largest cellular service provider in Bangladesh after Grameenphone. As of April 2012, Banglalink has a subscriber base of 25 million. [3] It is a wholly owned subsidiary of Osasco Telecom.

Banglalink had 1.03 million connections until December 2005. The number of Banglalink users increased by 257 per cent [4] and stood at 3.64 million at the end of 2006, making it the fastest growing operator in the world of that year. In August 2006, Banglalink became the first company to provide free incoming calls from BTTB for both postpaid and prepaid connections. On August 20, 2008, Banglalink got past the landmark of 10 million-subscriber base.

Sheba Telecom (PVT Ltd)-after talking lots- finally was granted license in 1989[6] to operate in the rural areas of 199 upazilas. Later it obtained GSM license in 1996 to extend its business to cellular mobile, radio telephone services. It launched operation in the last quarter of 1997 as a Bangladesh-Malaysia joint venture.

In July, 2004, it was reported that Egypt based Orascom Telecom is set to purchase the Malaysian stakes in Sheba Telecom through a hush-hush deal, as Sheba had failed to tap the business potentials in Bangladesh mainly due to a chronic feud between its Malaysian and Bangladeshi partners. An agreement was reached with Orascom worth US$25 million was finalized in secret. The pact has been kept secret for legal reasons, considering financial fallout and because of the feud.

The main reason for the undercover dealing was the joint venture agreement between the Bangladeshi and the Malaysian partners, which dictates that if any party sells its Sheba shares, the other party will enjoy the first right to buy that.

Integrated Services Ltd. (ISL), the Bangladeshi partner, was being ‘officially’ shown as purchasing the shares held by Technology Resources Industries (TRI) of Malaysia for $15 million. ISL then paid another $10 million to Standard Chartered Bank to settle Sheba's liabilities.

In September, 2004, Orascom Telecom Holdings purchased 100% of the shares of Sheba Telecom (Pvt.) Limited (“Sheba”). It was acquired for US$60 million. Sheba had a base of 59,000 users, of whom 49,000 were regular when it was sold.[7] Afterward it was re-branded and launched its services under the “Banglalink” brand on February 10, 2005. Banglalink’s license is a nationwide 15-year GSM license and will expire in November, 2011.

In March, 2008, Sheba Telecom (Pvt.) Limited changed its name as Orascom Telecom Bangladesh Limited, matching its parent company name.

orascom telecom bangladesh limited ("banglalink") is fully owned by orascom telecom holding s.a.e, egypt, ("oth"); the ultimate parent company of the group is vimpelcom, the 6th largest mobile phone operator in the world. banglalink was acquired by oth in 2004, and after a complete overhaul and the deployment of a new gsm network, its telecommunication services were re-launched under the brand name banglalink. When banglalink began operations in Bangladesh in February 2005, its impact was felt immediately: overnight mobile telephony became an affordable option for customers across a wide range of market segments.

Banglalink’s success was based on a simple mission: "bringing mobile telephony to the masses" which was the cornerstone of its strategy. Banglalink changed the mobile phone status from luxury to a necessity, brought mobile telephone to the general people of Bangladesh, and made a place in their hearts. The mobile phone has become the symbol for the positive change in Bangladesh.

this positive change that is quite correctly attributed to banglalink, has become the corporate positioning of banglalink and is translated in their slogan "making a difference" or "din bodol". "making a difference" not only in the telecom industry, but also through its products and services, to the lives of its customers. This corporate stance of "making a difference" has been reflected in everything banglalink does.

Page 41: Investment on Human Resource- In Telecommunication Sector

Banglalink attained 1 million subscribers by December 2005 and 3 million subscribers in October 2006. In less than two years, which is by December 2007, banglalink overtook aktel to become the second largest operator in Bangladesh with more than 7.1 million customers. Banglalink currently has 25.49 million subscribers as of June 2012, representing a market share of 27.18%

growth over the last years have been fuelled with innovative products and services targeting different market segments, aggressive improvement of network quality and dedicated customer care, creating an extensive distribution network across the country, and establishing a strong brand that emotionally connected customers with banglalink.

The real tigers behind the stripes!

We, at banglalink, believe that our teamwork is our greatest asset. Useful contributions made by each individual bring us that much closer to our goals. The banglalink family is made up of a group of passionate individuals, uniquely qualified from diverse disciplines but working towards our vision.

Banglalink ensures for the tigers/tigress:

A friendly, professional and mutually supportive environment that encourages our people to develop their potentials to an optimal level.

A true quality of professionalism that can be found in all world-class multinational companies.

Team oriented professionals, who contribute to the greater whole of the organization through their participation in decision-making situations.

A system, which recognizes and rewards groups as well as individuals for their efforts and contributions to the company.

Citycell Human Resource Management

Human resource or employees of an organization are very important and vital to the organization’s success. Equally important is the HR strategy.

The objective of City Cell’s HR strategy includes those employees:

Are efficiently utilized within the constraints of environment.

Are provided a reasonable quality of work-life.

Fulfills the objectives of the firm with full motivation.

Although this department has not yet come into real existence as yet but we can take it as an opportunity to discuss the human resource policies like hiring procedures, training, promotions and benefits as they have been carried out and given out until now. As already mentioned the human resource activities were carried out by the Admin Department and for that matter, it still is for the time being. Human Resources Department functions in the following distinct sections:

Planning, Strategy &

Compensation

Recurring & HR Operations

Page 42: Investment on Human Resource- In Telecommunication Sector

Learning & Development and Internal Communication

Office Services

Protocol & Legal Affairs

Hiring Procedures

In order to become an executive of City Cell a candidate should at least be a graduate from any r e c o g n i z e d u n i v e r s i t y i n B a n g l a d e s h o r a b r o a d . T h e c a n d i d a t e m u s t fi r s t p a s s a w r i tt e n examination. Then according to the importance of the post, he may have to face more than one interview before getting the final appointment. The interview board usually consists of VPs and AVPs. Sometimes the advisors also join in. Executives are also sometimes hired based on extraordinary performance during the internship period. Officers are hired on the basis of their experience and skills related to the specific field. Tertiary level education is however a must. The advisors or the directors as they are called are hired based on vast experience in the related areas. These people have already served in high positions in either government or private sector with success. They are hired on a contractual basis.

Training

Training is actually provided by the experienced people at work who can be executives or senior e x e c u ti v e s . T h e t r a i n i n g i s m o s t l y p r o v i d e d t h r o u g h w o r k . H o w e v e r , s o m e i d e a i s g i v e n o n t h e software of City Cell before they can be actually used by new recruits. During the training, the employees are given a very small briefing on rules, policies and the code of conduct of City Cell.

Promotion

Promotion comes based on excellent performance. However, promotions are very hard to come by. People have been serving on the post of executives for six years but have not received the promotion even though performances were better than ordinary.

Benefits

When an executive joins in, he usually have a basic salary of Tk. 12,000 and a mobile phone with maximum usage limit of Tk. 2000. However, they are charged a much cheaper rate than the usual c h a r g e r a t e s . F o r a p p o i n t m e n t s a t h i g h e r p o s t s t h a n e x e c u ti v e s , t h e s a l a r y i s n e g o ti a t e d . A n increment varying from Tk.500-12000 thousand is given to people working at CityCell based on the post and performance. Two festival bonuses are given to the employees every year. An employee is allowed a total of 41 days leave with pay. An employee gets a 21-day vacation leave with payment. He can take 10-days sick leave and 9 days casual leave in a year. E x e c u ti v e s a n d o ffi c e r s a r e n o t g i v e n i n c e n ti v e b a s e d p a y m e n t . T h e y d o n o t p a y a n y e x t r a benefits to its employees who may be seriously ill. Each employee of CityCell is entitled to a two days holiday in a week. However, it does not have to be on Fridays and Saturdays especially for the CSO people. CityCell has an attractive and competitive compensation package that is aimed to attract and retain talent and motivate our employees to do their best to contribute to the company’s success. CityCell offer a range of financial and non-financial rewards and benefits.

Salary & Pay Day

Monthly salary and allowances shall accrue from the commencement of the active service of an employee and shall generally become payable on a working day during the last week of the current month. Usually the emoluments would be sent to the bank account of the incumbent.

Page 43: Investment on Human Resource- In Telecommunication Sector

Festival Bonus

A l l t h e p e r m a n e n t e m p l o y e e s a r e e l i g i b l e f o r t w o ( 2 ) f e s ti v a l b o n u s e s e a c h y e a r . T h i s i s equivalent to one month’s basic salary for employee serving one year or more with the company. If length of service is less than one year, then a pro-rated bonus is paid based on the number of days served during the period.

Performance Bonus

CityCell has introduced a performance-based bonus for employees at the level of Manager and above. This bonus is linked to a measure of individual, group and organizational performance.

Leave Entitlement

All the regular employees of Pacific Bangladesh Telecom Limited are eligible for annual leave of 25 days and sick leave of 9 days in a year. If length of service is less than one year then the leave will be calculated on, a pro-rata basis based on the number of days served.

Leave Fare Assistance (LFA)

Any confirmed employee of CityCell, who requests for an annual leave of minimum nine (9) consecutive days, is entitled to obtain the Leave Fare Assistance. Upon granting the requests for LFA, employees are entitled to get a one-month’s basic salary.

Provident Fund

All the permanent employees of CityCell are entitled to become a member of Provident Fund. Every month 10% of the basic salary of an employee is contributed to the fund along with the same amount from the company’s account. Net income of the fund each year as on 31 December is ascertained and interest is credited to the members account at rate determined by the trustees. Any member, who has not completed three (3) years of continuous service, will not be entitled to get any portion of company’s contribution.

Gratuity

G r a t u i t y i s p r o v i d e d t o a l l p e r m a n e n t e m p l o y e e s o n b a s i c p a y . I t w i l l b e a d m i s s i b l e t o a n employee, who has rendered continuous services to the company for a period of seven (7) years and more. Completed year of service for the purpose of these rules means twelve (12) months of active service.

Group Life Insurance

The company provides coverage of life insurance to all its permanent employees after their confirmation with the company.

Medical Assistance scheme

To ensure proper and timely treatment/medical care of employees, company provides medical and hospitalization benefits to all employees through a well-reputed insurance company. Under t h i s s c h e m e , t h e c o m p a n y b e a r s a n d r e i m b u r s e s n e c e s s a r y & r e a s o n a b l e m e d i c a l e x p e n s e s incurred by an employee while in hospital confinement for treatment.

Transportation

Page 44: Investment on Human Resource- In Telecommunication Sector

CityCell has introduced a unique car scheme for the employees at the level of Manager and above. Under this scheme, company assists the Managers in purchasing a car through purchase contribution and other running & maintenance allowance, which covers fuel, driver’s salary, i n s u r a n c e & o t h e r m a i n t e n a n c e c o s t s . M o r e o v e r , e m p l o y e e s a t t h e l e v e l o f O ffi c e r s a n d Executives are provided with pick and drop facilities upon availability and on priority basis.

HR Policies & Procedures

A good number of HR policies and procedures introduced. Draft HR policies and procedures manual developed. To be made accessible via Intranet.

Performance Appraisal & Bonus System

Rollout of an MBO based appraisal system completed. Performance Bonus awarded in April 2005.

Job Evaluation

64 benchmark jobs to be evaluated using Hay method.Evaluation of most jobs below the manager level completed.Manager level JE to be completed soon.

HR Automation

HRIS installed. Data population is in progress. HR & IT jointly working on online leave administration system.

Learning & Development

Training & Development Policy developedTNA for Sales & Marketing division completed.4,026 man hrs. of training were provided so far Soft skills & leadership program to be launched this month

Employee Learning Center

Equipped with a good number of books for use by the employees.

Corporate Intranet

Currently at beta testing stageWill be launched soon

HSE Initiative in line with the IFC guidelines

HSE department created and staff engagedEnhanced focus on employee health, safety & hygiene

SWOT ANALYSIS

STRENGTHS:

CITYCELL is the first cellular operations in the South Asian sub-continent.It is first and only using AMPS (Advanced Mobile Phone System).CITYCELL first and only user of the CDMA technology which allows them to transfer twice as much data as oppose to the GSM (Global System for Mobile) technology.

Page 45: Investment on Human Resource- In Telecommunication Sector

The relationship among their staff is very good and friendly relationship among themselves, which creates a very good working situation.

WEAKNESSES:

The unreliable economic condition of our country means that main investors often refrain from investment. Because of the financial lucking CITYCELL is forced to withdraw technological resource from one place to another.And when there is financial support it took a lot of time to implement the new technology.The technology is changing at a rapid pore and it is very hard to keep pace with technology.The mobile market now has reached cut that competition level. The price was in getting increasing intense which is cutting down their profitability. There are some departments like the HRD and Billing and IT, which lack staff. In the Billing and IT department people of Risk Management have to do the job of Revenue Generation and vice versa.Comparatively lower network coverage than Grameen Phone.Inability to get the best out of the current CDMA technology. There are some problems regarding call drops and delays in receiving SMS.A varied and sometimes confusing tariff structure. CityCell does not have a uniform charge rate structure for prepaid mobiles and for the postpaid mobiles.Set options are much lesser for CDMA users and at the same time more expensive too as CDMA sets costs higher than GSM sets for the same model types.For set replacement a customer has to go to PBTL and at same time have to wait for at least a day. But with GSM sets the replacement is as easy as going to the market and buying a new one, which is basically cheaper than CDMA sets.There are still some customers using the AMPS technology and would not switch to CDMA. For them CityCell is forced to maintain a separate database which makes the job, a bit more difficult than it should be.

OPPORTUNITIES:

The ability to expand into new services that require an approach that is compatible with PBTL’s strengths. For example provision of wireless data transfer services by corporate clients (corporate clients generally require less technical or otherwise support). The data transfer business has good future in Bangladesh.

Legalization of the Voice Over Internet Protocol (VOIP) business is a good opportunity for FWT to sell more. People would tend to use the FWTs as they are very cheap (onlyTk.2 per minute) to use, have access to and from any phones including mobile-mobile phones and thus connecting abroad would be possible through this FWT with mobiles that do not have BTTB connectivity.Expansion into landline services from dedicated stations across country that will provide compatibility with other Bangladeshi telecom networksThe biggest opportunity for CityCell is that the market is far from being saturated. If the p r i c e s a r e r e d u c e d a n d t h e y c a n e s t a b l i s h s t r o n g n e t w o r k c o v e r a g e t h e y c a n g e t a customer segment of low income people.

THREATS:

The outthought competition in the market means that CITYCELL is going to lose their profitability.

Page 46: Investment on Human Resource- In Telecommunication Sector

They are facing new kind of competitors like fixed phone operators who are also using CDMA and GSM technologies to provide land phone services. They are considered as a major threat to the mobile telecom industry.Illegal import of GSM mobile sets means that CDMA sets, which are provided by C I T Y C E L L , a r e m o r e e x p e n s i v e t h e n t h e m a r k e t p r i c e o f p h o n e s . H i g h d e g r e e o f acceptance of GSM technology over CDMA in local market. GSM sets are cheap and replacement costs are much lesser. People might switch rather than replace CityCell sets.High degree of bargaining power of suppliers as no one else uses CDMA technology in Bangladesh to provide cellular telecom service.H i g h n e t w o r k c o v e r a g e o f m a j o r G S M u ti l i z i n g c o m p a n y l i k e G r a m e e n P h o n e – a s compared to City Cell’s own partial coverage. GP has more options to peak new customers where CityCell network does not exist.Aktel and Banglalink also have recently developed strong network coverage, and was the first to introduce a prepaid with both ways BTTB. It took away a big market and still can take away more.Grameen Phone, Aktel and Banglalink have already introduced the international roaming o p ti o n s w h i c h h a v e n o t d o n e . I t c a n e a t a w a y a b i g p o r ti o n o f t h e c o r p o r a t e m a r k e t segment.The dealers of GSM using technology more often than not sell SIM cards and set separately which is illegal. So it has always been cheaper to get a GSM connection. CityCell dealers cannot do that, as the set itself has to be programmed, which can only be done at CityCell. So if the law is not enforced CityCell sales can suffer a lot.

Airtel Overview

In January 2010, BhartiAirtel Limited, Asia’s leading integrated telecom services provider, acquired 70% stake in Warid Telecom, Bangladesh, a subsidiary of the UAE-based Abu Dhabi Group.BhartiAirtel is making a fresh investment of USD 300 million to rapidly expand the operations of Warid Telecom and have management and board control of the company. This is the largest investment in Bangladesh by an Indian company. Dhabi Group continues as a strategic partner retaining 30% shareholding and has its nominees on the Board of the Company.The new funding is being utilised for expansion of the network, both for coverage and capacity, and introduction of innovative products and services. As a result of this additional investment, the overall investment in the company will be in the region of USD 1 billion.This is BhartiAirtel’s second operation outside of India. The company launched its mobile services in Sri Lanka in January 2009 on a state-of-the-art 3.5G network. The company crossed the 1 million customers mark within six months of launch on the back of innovative offerings as well as rapid expansion of network coverage and distribution.

Chief HRM Policies

There are some HRM policies for employees from Recruiting to problem solving.•Providing Equal Employment Opportunity and a safe Workplace•Planning and Recruiting•Selecting Employees•Training Employees•Job Design•Customer Services

Page 47: Investment on Human Resource- In Telecommunication Sector

•Job Evaluation•Salary Structure•Compensation and Benefits•Employees Conduct and Ethics•Problem Solv

Recruiting Procedure

There is no specific number of per year vacancies in Warid telecom. It depends upon thenumber of employees needed per year. The company plans and hires the employees itself.It does take the services from any other recruitment firm. The company forecast the demand for labor every year. During forecasting They include measures of the economy,actions of competitors, and change in technology and trends in the composition of labor force. Moreover they also conduct an analysis that how many people are currently working ondifferent jobs have relevant skills according to their jobs. Warid Telecom has long term goals. They set our goals by making the analysis of labor supply and demand. They also focus on our product and try to improve it with the passage of time. The company did not downsize their employees; they hire workers on both temporary and permanent basis. Mostly workers are hired on Permanent basis. Some workers are hired temporary but based upon their work, after some time they are also appointed as permanent workers. The two main sources by which the company recruits the Human Resource are given below:

Internal Source

In this source any one employee, within the company who will be able to done the high post job, is selected. The information about the post or vacancy is pasted on bulletin boards; on co-operate intranets and anywhere else. This source is used less.

External Source

I n t h i s s o u r c e t h e a d v e r ti s e m e n t i s p u b l i s h e d i n n e w s p a p e r s . Candidates are selected from applicants by conducting interviews. In this case people also use some references to gain the jobs. This source is used more. Moreover they also publish the vacancies also on internet. So the peoples apply from i n t e r n e t a r e c a l l e d f o r i n t e r v i e w s a n d f o r f u r t h e r p r o c e s s . I f t h e c o m p a n y m a d e i t s franchise on any rural area, then company prefer to hire the person from that area because it is easy for customers to communicate.

Selecting Employees

Like every multinational company, Warid Telecom has also a specialized procedure for selecting the employees. The selection process is described as follows:•Requisition raised by concern department.•HR Department processes this requisition.•Publish the advertisement in the newspapers.•Screening the application forms and resumes.•Interviewing Candidates

They select the employees on the basis of work experience and knowledge. Good resultsa r e a l s o m a tt e r s b u t k n o w l e d g e i s v e r y e s s e n ti a l f o r c o n c e r n e d j o b . I n s e l e c ti n g t h e c o m p a n y c o n d u c t s t e s t s f o r c l e r i c a l j o b s . T h e r e a r e s o m e e n g i n e e r i n g t e s t s , communication skills tests, computer knowledge tests and many more based upon thevacancy.

Page 48: Investment on Human Resource- In Telecommunication Sector

Line Managers and Human Resource Managers conduct interviews from the candidates.But if there is an interview for some special posts like General Managers etc, then Boardof Directors and Chief Executive Officers conduct interviews. The company conducts alltypes of interviews like structured, situational, behavior description, and panel interview.In most of the cases, there are panel interviews. The selected candidates are informed by both e-mail and postal services

Training Procedure

Human Resources Development is the framework that focuses on the organizations competencies at the first stage, training, and then developing the employee, through education, to satisfy the organizations long-term needs and the individuals’ career goals a n d e m p l o y e e v a l u e t o t h e i r p r e s e n t a n d f u t u r e e m p l o y e r s . H u m a n R e s o u r c e s Development can be defined simply as developing the most important section of any business its human resource by attaining or upgrading employee skills and attitudes at all levels to maximize enterprise effectiveness. The people within an organization are its human resource. Human Resources Development from a business perspective is not entirely focused on the individual’s growth and development; it focuses the entire growth and development of the company. In Warid telecom different method are used for employee training.

•Onsite training–On-the-job training –Coaching –Job rotation•Off site training–Lectures/seminars –Cases studies –Computer-assisted instruction. There are two types of trainings given to the employees. The types and their durations are given below:•For Local Trainings (maximum 1 Weeks)•For Foreign Trainings (maximum 2-4 Weeks)Skill Training:Warid telecom wants some skills developed through training methods.This are-•Effective verbal and written communication—effective listening•Interpersonal Skills•Public Relations Skills•Technological Skills•Workplace Attributes•Ethical Behavior•Individual Accountability•Responsiveness•Learning from failures/mistakes

Job Design

The HR Department designs the jobs in which they define how work will be performed a n d w h a t t a s k w i l l b e r e q u i r e d i n a g i v e n j o b . T h e f o u r p h e n o m e n o n o f J o b t h a t i s practiced in Warid Telecom are given below:

Job Enlargement: to some extent at managerial level.Job extension: many times.Job rotation:how to some extent in Inter-department.Job enrichment:many times.

Page 49: Investment on Human Resource- In Telecommunication Sector

Customer Services

Due to operational requirements, the timings for customer service division may differ anda r e c o m m u n i c a t e a c c o r d i n g l y . A c h e e r f u l a n d p o s i ti v e a tti t u d e i s e s s e n ti a l t o o u r commitment to extraordinary customer service and impeccable quality. It is essential thatt h e e m p l o y e e s a c t i n a p r o f e s s i o n a l m a n n e r a n d e x t e n d t h e h i g h e s t c o u r t e s y t o c o -workers, visitors, customers, vendors and clients.

Job Evaluation

All new staff (except GMs or above) will have to undergo probation period for 3 months. During the Probation period, the notice period is one day. Performance of the employee is monitored closely, if the new staff is unable to perform as per Company’s expectations, the probation may be extended or his/her service may be terminated. All such decisions are made in consultation with HR Department. Each job evaluation is assigned with a grade, which has a particular salary associated with it. This range is applicable to all positions assigned to that grade. Every salary range associated with a grade, has a minimum and maximum level.

Salary Structure

T h e C o m p a n y ’ s s a l a r y s t r u c t u r e c o n s i s t s o f s a l a r y g r a d e s a n d s a l a r y r a n g e s . I t i s established based on the relative values of jobs because of job evaluation process and c o m p e ti ti v e m a r k e t p r a c ti c e s . T h e e x i s t e n c e o f s t r u c t u r e a l l o w s d i ff e r e n c e s i n performance and contribution to be rewarded at different salary levels. Every year, the company reviews its salary range in accordance with the results of a market survey to maintain the competitiveness of the salary structure. It depends on how competitive they are when compared to the market. T h e c r i t e r i o n , w h i c h i s u s e d b y t h e c o m p a n y f o r d e c i d i n g t h e s a l a r y o f a n e m p l o y e e , includes the following:

•The employee has related skills, knowledge and experience.•The employee’s trend of performance over time versus the current year.•Internal and external pay equity.•Pay relationships: where to position the employee’s base pay relative to others within the department Who are performing similar work.

Warid Telecom’s Philosophy is to “Pay or Performance”, by comparing ourselves primarily with other Telecom companies and also with multi-national consumer product companies. They position their pay structure at 80th percentile of market and their benefits are at market average. If an employee does not work for a full month, his/her salary for that month will be prorated.

As a matter Warid Telecom’s policy, disclosure of salary information is strictly restricted. The specific salary paid to an individual should not be disclosed to anyone within or outside the company. If any employee discloses the salary information to anyone within or outside the company there is a strict disciplinary action against him including immediate termination from his/her service. The company made salary review because in this way it is easy or the company or determining who is qualified to receive salary increase. The factors considered in making the salary review are:

•Current performance of the employee.•Current position of his/her salary within the assigned salary range.Compensation and BenefitsFollowing are the benefits given by Warid Telecom to its employees:•Group Life Insurance.

Page 50: Investment on Human Resource- In Telecommunication Sector

•Hospitalization.•Out Patient Medical Practice.•Dental Treatment.•Preventive Measures.•Cellular Phone Policy.•Car Policy.•Others

Group life insurance coverage is provided to all employees. In the case of an employee’s death, the beneficiaries of the employee shall receive theinsurance benefits .the amount would be doubled in case of accidental death.All employees their spouse and children up to the age of 25 (no limits for t h e u n m a r r i e d d a u g h t e r s ) d e p e n d e n t p a r e n t s a r e e l i g i b l e f o r t h e hospitalization.The company expects its employees too appropriately and reasonable use the cellular facility, keeping the perspective that this is a business tool and n o t a b e n e fi t / b e n e fi t . F u r t h e r m o r e , a l l p e r s o n a l / p r i v a t e c a l l s s h a l l b e identified and duly paid by the user. If the cellular phone bill exceeds the stipulated limits, additional bill is deducted from salary of the employee.Warid Telecom provides all eligible employees (except GMs) with the corresponding car allowance to compensate them for official commute, b u s i n e s s a n d p e r s o n a l u s e . P o o l v e h i c l e s & D e p a r t m e n t V e h i c l e s Necessary maintenance and provisioning of Pool/Department vehicles are the responsibility of Admin Service department.All regular employees are entitled to one monthly gross salary per year of s e r v i c e , a s g r a t u i t y a ft e r c o m p l e ti o n o f o n e y e a r o f s e r v i c e . G r a t u i t y a m o u n t i s b a s e d o n p a y r a t e a t t h e e n d o f e m p l o y m e n t . A l l r e g u l a r employees are entitled to contributory provident fund. The provident fund shall be deducted at a rate of 9% of basic salary per month after successful completion of 90 days probationary period.

Limitation:

Disadvantages of the Company

There are also have some lacking of Warid Telecom which can be covered though the identification and analysis.• Network issues (signals fluctuation problem)•Coverage Issues (city coverage is a big issue)•Delayed activities.•Difficult to convert the customer of the other companies user.•Moderately high rate of calls.•Inadequate customer care center.•Lack of new offers or packages.

Teletalk Overview

Teletalk Bangladesh Limited is a public limited company, registered under the Registrar of the Joint stock companies of Bangladesh. Total shares owned by the Government of the Peoples Republic of Bangladesh.

Page 51: Investment on Human Resource- In Telecommunication Sector

We continue to grow and engage our customers through our clear commitment to offering high quality products and services as well as leading customer retention and loyalty programmers. Teletalk continues to be a part of the revolution that is connecting millions of Bangladeshi people and around the world.

Teletalk Bangladesh limited was established keeping a specific role in mind. Teletalk has forged ahead, strengthened its path over the years, and achieved some feats truly to be proud of, as the only Bangladeshi mobile operator and the only operator with 100% native technical and engineering human resource base, Teletalk thrives to become the true people’s phone – “Amader Phone”.

Mission & Vision: To innovate and constantly find new ways to enhance our services to our customer’s current needs and desires for the future. Our vision is to know our customers and meet their needs better than anyone else.

Basic objectives for which the Company was formed are highlighted here under:

To provide mobile telephone service to the people from the public sector

To ensure fair competition between public and private sectors and thereby to safeguard public interest

To meet a portion of unmitigated high demand of mobile telephone

To create a new source of revenue for the government.

Incorporation of TeletalkTeletalk Bangladesh Limited (the “Company”) was incorporated on 26 December 2004 as a public limited company under the Companies Act, 1994 with an authorized capital of Tk.20, 000,000,000 being the only government sponsored mobile telephone Company in the country. On the same day, the Company obtained Certificate of Commencement of Business.

Company’s Network ExpansionTeletalk Bangladesh Limited has continually expanded its network, to better accommodate its growing customer base as well as to keep the promise of providing better service. As of now, Teletalk has already established its network foothold in 64 Districts, 402 Upazilas, and most of the highways. Teletalk is continuing its network expansion to reach more corners of Bangladesh.

Scope to be exploredm-Governance is derived from e-governance refers to government’s use of information and communication technology to exchange information and services with citizens, businesses, and other arms of government. Teletalk is ready to provide with the help of third party software, mobile interactivity for the citizens of Bangladesh with m-Governance. This may includes, but not limited to

Mobile based Live Citizen Reporting Solution

Mobile User Info bank (Database of Mobile Users of Bangladesh)

Agriculture information services for the farmers and for the end users, like product price in different parts of the country.

Product ID for all consumer products/ Organization.