Human Resources Planning and Policy

EXECUTIVE SUMMARY

The Strategic Human Resource Management program prepares senior line and HR executives to maximize their impact on the most vital resource of GrameenPhone—its human resources. Senior executives, in partnership with talented human resource (HR) executives, have an enormous influence on the success of the organization. Together, they can build one of the most critical sources of sustainable competitive advantage—an organization whose design, culture, and people are aligned with strategy and values.

This study examines the impact of strategy, core competence, and involvement of HR executives in strategic decision making on the organization managers’ evaluation of the effectiveness of HR and its performance. Survey (IVC-Internal Value Creation) results indicate that higher involvement of HR effectiveness, and that the relationship was strongest to the extent that GrameenPhone pursued a product innovation strategy and viewed skilled employees as their core competence.

IVC survey conducted in cooperation with Research International, and the questionnaires contain questions about the experiences regarding matters such as motivation, responsibility and influence, leadership, competence and opportunities for professional development and relating to pre-requisites of innovation and renewal, efficiency in work processes, routines and support systems and so forth.

INTRODUCTION

GrameenPhone, the largest telecommunications service provider in the country, is playing a crucial role in increasing the country’s telephone penetration rate, which is still one of the lowest in the world with less than four telephones per 100 people. As of October 2005, more than 4.4 million users in Bangladesh now prefer GrameenPhone.

GrameenPhone has a dual purpose: to receive an economic return on its investments and to contribute to the economic development of Bangladesh where telecommunications can play a critical role.

GrameenPhone’s basic strategy is coverage of both rural and urban areas. GrameenPhone builds continuous coverage, cell after cell. While the intensity of coverage may vary from area to area depending on market conditions, the basic strategy of cell-to-cell coverage is applied throughout GrameenPhone’s network.

GrameenPhone’s Global System for Mobile or GSM technology is the most widely accepted digital system in the world, currently used by 1.5 billion people in some 150 countries. GSM brings the most advanced developments in cellular technology at a reasonable cost by spurring severe competition among manufacturers and driving down the cost of equipment. Thus, consumers get the best for the least.

The people who are making it happen at GrameenPhone – the employees – are young, dedicated and energetic. All of them are well-educated at home or abroad, with both sexes (genders) and minority groups in Bangladesh being well represented. They know in their hearts that GrameenPhone is more than just about phones. This sense of purpose gives them the dedication and the drive, producing – more than 8 and half years – the widest coverage and largest subscriber – base industry. GrameenPhone knows that the talents and energy of its employees are critical to its operation and treats them accordingly.

GrameenPhone believes in service, a service that leads to good business and good development. Telephony helps people work together, raising their productivity. This gain in productivity is development, which in turn enables them to afford a telephone service, generating a good business. Thus, development and business go together.

OBJECTIVE

The most important part of preparing this report is business development throughout finding out the following objectives.

To find out the strengths of the company.
To identify the areas on which company needs to focus for improvement.
To specify the way of improvement on identified areas.

SCOPE

The description stated in the introduction and objective of this report provides the seeds for delineating the scope of the proposed work. The scope of the study is expected to be limited to those described below.

Collection, compilation and analysis of information relating to the specific objectives of the study.
Preparation of Inception report incorporating detailed work plan and methodology of the study.
Undertake processing and analysis of data and information collected.
Prepare the draft final report incorporating analysis and recommendation.
Transmittal of draft report for feedback and comments.
Finalization of the draft in the light of the feedback.
Transmittal of the final report.

METHODOLOGY

This assignment has been prepared on the basis of information extracted from the results of IVC survey 2004 which has been conducted in cooperation with Research International, a reputed research institute from Sweden where near about 800 employees of GrameenPhone participated through online.

The data were analyzed and the report was prepared in a very short form but comprehensive. Descriptive approaches are mainly used in the expression for understanding of this report.

LIMITATIONS

The assignment was conducted in a considerably short period of time. Extension of time was not any way possible as it was fixed earlier by the course coordinator. Some statistical data were not possible to incorporate due to confidential issues and code of conduct of the company, moreover, as the assignment was prepared in a limited time; various fields of this topic couldn’t be covered in a wider context.

OBSERVATIONS & ANALYSES

(Employees Survey 2004)

OBSERVATIONS

This survey contains a variety of questions, which ask for employee’s opinion about their job, and about GrameenPhone. The survey has been carried out on the basis of some Internal Value Creation Index. These are summarized as follows.

Index 01: Working Style – Way of Working

Criteria:

Consider making mistakes to be an opportunity for learning and improvement

Allowed to take risk within a certain limit

See change as an opportunity to evolve and improve

Participants are selected based on qualifications and competence for groups/projects

Those who succeed in GrameenPhone stand up for their views rather than make compromises.

Department/unit listens different points of view

Department/unit continually looks for new and better ways to simplify and improve our work.

Evaluate new ideas irrespective of who suggests them (employees, clients, competitors).

New ideas are strongly encouraged and supported

Index 02: Responsibility and Authority

Criteria:

Share responsibility when problems with work arise.

Proactive initiative.

Have considerable freedom of action without consult with manager.

Have the authority to carry out responsibilities assigned.

Index 03: Influence and Participation

Criteria:

Can influence important decisions which affect work

Have access to all the information to do a good job.

Management within department/unit considers employees views before making important decisions

Index 04: Learning and Sharing of Information

Criteria:

Good at sharing knowledge and experiences with each other to complete tasks and meet challenges.

Uses continuous departmental feedback from external and internal customers to improve work processes/products/services.

Index 05: Competences – Professional and Personal Development

Criteria:

Competence in doing a good job.

Get to use skills and qualifications in job.

Have feelings towards development and growing through work

Awareness on satisfaction towards customers

Familiar with situation regarding competition and the market share

Familiar with customer’s perspective compared to competitors.

Familiar with company’s key products and services.

Awareness on company’s profit/efficiency.

Index 06: Goals of GP

Criteria:

Corporate executives communicate Telenor’s goals

Familiar with the overall goals.

See a clear connection between the overall goals of GrameenPhone and the goals of my department/unit.

Clearly defined goals for work

Follow up goals & results on a regular basis within the dept/unit

Index 07: Organizational Efficiency

Criteria:

Organized in a suitable way and everyone knows each job.

Way of working (i.e., organizing) contributes to efficiency in work.

Have sufficient working tools to do the job efficiently.

Index 08: Barriers of Efficiency

Criteria:

Controls of Details

Matters are not attended to on time

Rigid Rules

Guidelines are not clear

Decisions aren’t made quickly enough

Decisions are not implemented

Computer systems/support systems

Strategies/goals are not clear

People are protective of there are of responsibility

Poor work routines

People only think about themselves

Wrong organizational structure

Internal Politics

Lack of feedback and support to carry out tasks

Don’t feel that any significant barriers exists to perform efficiently

Index 09: Efficient Decision Making

Criteria:

The Management at GrameePhone is very decisive.

Decisions are made efficiently within department/unit.

Once a decision is made department/unit is loyal to it and implements it according to plan.

Index 10: Cooperation

Criteria:

Rate cooperation within department/unit.

Rate cooperation within division.

Rate cooperation within one division with another.

Rate cooperation between GrameenPhone and the different business units in Telenor.

Index 11: Motivation

Criteria:

Frequency of satisfaction with the job.

Index 12: Personal Development (PD) Discussion

Criteria:

Receive constructive and valuable feedback regarding performance

Give managerial feedback on leadership

Follow up on the activities that we agreed upon in the previous discussion

Formulate concrete goals for the next year

Agreed on development needs and draw up an activity plan for the coming period

Index 13: Leadership – Confidence in Management

Criteria:

Towards Telenor’s Group Management

Towards Management of GrameenPhone

Towards Manager’s Manager

Towards Immediate Manager

Index 14: Leadership – Passion for Business (Immediate Manager)

Criteria:

Actively provide new insight into relevant market issues, regarding clients, competitors and other stakeholders groups.

Demonstrate in practice, what is required for GrameenPhone to succeed.

Creates enthusiasm and motivates us to make an extra effort.

Communicates clearly and comprehensively where company stays ahead.

Enables to quickly adapt to changing conditions

Decisive and acts quickly when required

Ensures that the decisions which are made are also implemented

Works actively in improving the way of work

Ensures that decisions and schedules are followed up

Works purposefully towards making the best in business

Index 15: Leadership – Empower People

Criteria:

Communicates in a clear and comprehensive way as per expectation

Gives constructive feedback

Gives credit for achievements

Coaches and supports in career development

Ensures that everyone participate in planning, execution and follow up of department/units activities.

Put business ethics and values on the agenda

Lives up to what manager (he/she) says

Is honest and predictable.

Index 16: Project Work

Criteria:

Project Managers monitor costs and time schedules throughout the course of the project.

Project Managers get the necessary resources

Good at transferring the experience gained from one project to others.

Evaluate completed projects in order to improve the way projects are conducted.

The project owner and the management group support and follow up the project.

The line organization is well prepared to implement the results to the project.

Index 17: Reputation

Criteria:

Proud to ethical & social involvement

Competent and professional company

Innovative and forward thinking company

Make a positive contribution to society

Is known for its high ethical standard

Is a good company to work for

Is good at getting to know clients requirements and quickly adjusting to meet them

Has a very competent management

Index 18: Employer Loyalty

Criteria:

Want to continue my current job

Trying to find another job within Telenor Corporation

Trying to find another job within own Unit/Division

Trying to find another job within GrameenPhone

Looking for another employer

ANALYSES

GP’s goal is to be an attractive workplace which is innovative, customer-oriented and effective and where employees have the possibility to develop their professional and personal skills.

The results from the Value Creation survey gave a base from which actions can be implemented and changes can be made in order to reach GP’s goal.

The Managers who run the department will execute all the actions involving all employees within their unit/department. This results will cover the way of work, the method should be followed and the way to carry IVC process forward or continuous improvements at all level of the organization.

Employees must be a part of this process as it is important to get their perspective and give them the possibility to influence changes and development in the organization.

Strength of the Organization

3 key areas have been identified as the strengths of the organization after the survey. These are,

1. Efficiency

2. Competence

3. Learning and Sharing

Weakness of the Organization

4 areas have been identified on which company needs to focus for 2005. These are,

1. Motivation

2. Leadership Development

3. Cooperation & Sharing Information

4. Influence & Participation

1. Motivation

Reason for Problem:

Lack of recognition and reward

Absence of proper distribution of work

Unequal perception about job nature

Actions:

Introduce performance based award

Widen the job rotation

Divisional training plan on personal and professional development based on need basis

Implement fair and transparent promotion and salary fixation policy and communication

2. Leadership Development

Reason for Problem:

Lack of empowerment

Lack of enhancement of skill

Clear direction by management and realistic target setting

Actions:

Proper Delegation

Training of mid level managers on leadership, negotiation & core values

Proper planning to achieve strategic targets.

Cooperation & Sharing Information

Reason for Problem:

Lack of communication

Lack of openness & trust

Lack of respect towards colleagues

Lack of clear understanding of cross functional activities

Actions:

Fairness in decision making

Improve respect towards colleagues

Knowledge sharing through decision making

Improve interpersonal relationship

Influence & Participation

Reason for Problem:

Lack of willingness

Lack of information flow

Lack of encouragement for participation

Actions:

Involvement of team members in decision making

Process Development of information flow

Building environment for participation

COMMENTS

GrameenPhone believes that employees are the most important assets of the organization. Transparency of their goal and performance measurement plays an important role in achieving target of the organization. GrameenPhone has implemented TLDP (Telenor Leadership Development Process) and IVC (Internal Value Creation) each year developed by Telenor to maintain this asset to reach its goal. By comparing the result of the annual IVC survey with TLDP, a basis is achieved for the implementation of improvement measures with respect to employees in general and managers in particular.

GP also believes in transparency and accountability to society as a whole through establishment of efficient and effective corporate governance. This will be a continuous process and will be always developed to further strengthen GP’s corporate governance functions in the years to come.

REFERENCES