Grameenphone

Executive Summary
GrameenPhone Ltd (GP) is a fast growing mobile telecommunication. Considering the importance of customer satisfaction, this project was designed to assess the satisfaction level of GP’s subscribers. It is generally recognized that, although GrameenPhone is leading the market of mobile telecommunication industry, its customer’s are not fully satisfied with their services. If GP does not take care of these dissatisfactions and other company enters the market with similar offers, it will be difficult for GrameenPhone to keep current market share intact. A survey was thus conducted focusing on different customer satisfaction factors of GrameenPhone.
GrameenPhone has been successful to build a superior image in comparison to the other operators. In other words, GP has a clear advantage over the competitors. GrameenPhone has some additional features in comparison to its competitors. It is playing a vital role to increase the subscribers of GrameenPhone. Another important thing is that GP users are mostly satisfied with the initial price of GP connections and handsets. Because, before GP’s introduction to the market, mobile phones were totally out of reach to the major part of the current market. Moreover, GrameenPhone subscribers are happy with the country wide network. In spite of this, GP users are not satisfied with service of the company.
Many important factors are acting behind this overall dissatisfaction. Significant dissatisfactions were observed in the factors like quality of air time and network availability, service of helpline, service of info centers, high billing rate, and so on. Customer satisfaction was observed in the areas like initial price, wide network etc. Most importantly, a significant portion of the GP subscribers were found not fully loyal toward the company. GrameenPhone connections are not always available. This is especially true for the pre paid service. The findings of this survey has recently has reduced this problem to a limited extent. Sometimes, the subscribers need to pay extra money to get this service.
GP has more then 600 GPSD, 18 GPC & 12 GPCF for after sales services. The GP helpline is also an important customer care tool. But it is also shortage of capacity. Subscribers need to spend significant amount of time to reach the customer care. In some case behavior of the helpline CM’s (Customer Manager) is also questionable. It is also mainly due to the extent of the services they are to handle. It is too difficult to handle a large numbers of subscribers with a smiling face  continuously. Most of the subscribers are not happy with the billing rate of GrameenPhone. They think it is too high in the context of Bangladesh. But they are still using the service as they do not have any alternative to switch to. If others come up with lower price, GP might face challenge. If any other company comes up with same sort of services, the GP subscribers might switch to that company.
Following those recommendations, GrameenPhone can eliminate the dissatisfactions and thus earn a sustainable distinct competitive advantage to continue their market leadership
􀂾GP should earn flexibility to be able to reduce the bill. Currently it should take into account that others are offering lower price packages.
􀂾Capacity of the helpline should be increased in the peak hours.
􀂾The customers should be made aware of the waiting charges they are to pay to be in queue in getting the services from the call center.
􀂾To improve the load on the network, the existing capacity should be improve to fulfill the need of the customers.
􀂾The customers face difficulties in payment of bill on bank holidays. It would be convent for them to introduce payments card.
􀂾The customers are made happy if they receive greetings message on special occasions.
􀂾Network development should be steady; GP should never sell connections in excess to its capacity.
􀂾Capacity of the GrameenPhone Center (GPC) should be increased to reduce the stress of the subscribers.
􀂾Different programs should be taken to educate the subscribers regarding different essential features of mobile phone.
􀂾GrameenPhone should take extensive program to build a positive image among their users. In this process they should try to eliminate the misconceptions of the users regarding GP.
􀂾To improve the load on the network, the existing capacity should be improve to fulfill the need of the customers.



1.0 Introduction
Grameenphone is the biggest mobile telecommunications operator in Bangladesh.
Grameenphone widely known as GP is also the most important telecommunications service
provider in Bangladesh. Grameenphone Limited received a license for cellular phone operation
in Bangladesh from the Ministry of Posts and Telecommunications on November 28, 1996.
Grameenphone started operations on March 26, 1997, the Independence Day in Bangladesh.
With more than 35 million subscribers as of October 2010, Grameenphone is the largest cellular
operator and to cover most part of the country. It is a joint venture enterprise between Telenor
and Grameen Telecom. Telenor is the largest telecommunications company in Norway, owns
55.80% shares of Grameenphone, Grameen Telecom owns 34.20% and the remaining 10% is
General public & other institution.
Hence, in this research, the researcher has to examine the HRM practices (Job security,
Compensation, Motivation and Promotion) and employees’ work–related attitude (Employee job
satisfaction), in the context of Grameenphone Limited.
2.0 Statement of the Problem
The study found that, job security and compensation is connected with employee work related
attitude to organization. In this period, job security and compensation is major concern for
employee’s job satisfaction, especially during challenging economic time. Job satisfaction will
be related with employee’s productivity. When employees suffer job security problem then there
productivity will decrease. Recently, the top management of Grameenphone Limited has been
taking a step which is not in favor for employees. HRD section always takes this opportunity to
evaluate the performance of the employees. The employees of Grameenphone Limited have
faced job security problem and they do not feeling safe in work place. It was revealed that
employees work related attitude is related to organizations HRM practice. Employees are paid
compensation in addition to wages and salaries. Compensation is linked to performance. Now
the employees of Grameenphone Limited feel that, they are not getting properly and justifiably
compensation for their effort. They also feel that, last few years increment and salary structure
should be restructured. Compensation practice is one of human resources management practice
which normally refers to pay, wage, salary and benefit etc. Many researchers argued that
incentive based compensation has a great effect on organizational performance (Gerhart and
Milkovich, 1992; Milkovich and Boudreau, 1998). Motivated employees are more productive.
But in Grameenphone limited employee’s motivation and also there trust level is not up to the
mark. Employees are not getting enough reward for their work. That’s why employees are less
motivated. The major factors of motivation are one’s needs, rewards, wealth, determined goals,
beliefs and dignity (Vroom, 1990). It was discovered that employee’s promotion are also
connected with employee work related attitude. The employees of Grameenphone Limited are
not satisfied with their promotion policy. They feel they are stuck in a same position for last few
years. Promotion follows a defined set pattern which is outlined in the employment bond
(Doeringer & Piore, 1971). It is generally thought that employees feel good about their jobs
when they are using their skills and abilities and contributing to the organization. (Petrescu, and
Simmons, 2008) found that several HRM practices raise employees overall job satisfaction. In
this research, my focus would be Job satisfaction.
Therefore the researchers want to find out whether the most common HRM practices (Job
security, Compensation, Motivation, and Promotion) have any relationship with employee work–
related attitudes (Job satisfaction), in the context of Grameenphone Limited.
3.0 Purpose of the study
The purpose of this study is to find out a relationship between HRM practices (Job security,
Compensation, Motivation, and Promotion) and employees’ work–related attitude (Employee job
satisfaction), in the context of Grameenphone Limited. It is very important for the HR of
Grameenphone Limited to develop strong relationship with employee. Therefore the researcher
purpose is to find out, is there any significant relationship between HRM practices and employee
work–related attitude, in the context of Grameenphone Limited.
4.0 Literature Review
This study focuses on the relative importance of job satisfaction factors and their impacts on the
overall job satisfaction of GP House (Corporate Finance and Treasury) in Grameenphone
Limited, Bangladesh. The result shows that Job security, Motivation, Compensation and
Promotion are the most important factors contributing to job satisfaction.
4.1 Job security
Job security is the most important part of employee’s job satisfaction now a day. Job security has
a positive effect on organizational commitment and employee performance. According to
Herzberg (1968), job security is the area to which organization provides constant services for its
employees. Job security has been conceptualized as the amount to which and worker could wait
for to stay in the job for over a total period of time (Delery & Doty, 1996). Abegglen (1958)
argued that there is a high level of loyalty if there is job security. Many researchers said that job
insecurity decreases the employee performance (Bolt, 1983; Rosow and Zager, 1985). Fey et al.
(1999) argue that if the companies provide the job security to the employees, it motivates the
employee to become more dedicated with his job. If any companies shows with his work and
attitude that, the employee is no more wanted in this organization then there is no dedication, no
dependability and no extra work will be performed by the employee. Delery and Doty (1996)
there is positive relation among job security and firm performance when they conducted the
study of banking sector. They also stated that if there is job security it sends a message to the
employees that organization is committed with its employees. Delery and Doty (1996) also
argued that the return on assets also increases when there is employment security of the loan
officer.

4.2 Compensation
Compensation refers to pay, wage, salary and benefit etc. Compensation is connected to
employee’s job satisfaction. Compensation leads to better motivation among employees.
Compensation practice is one of the top human resources management practice. Incentive based
compensation has a huge effect on organizational performance. Noon (2001) define
compensation as “payment for work, which can assume a number of different forms, including a
basic wage or salary, additional cash payments, such as shift pay and overtime pay, and benefits
in kind.” Singh (2004) there are many technique with the help of which the firms can motivate
their employees and achieve the specific goals and objectives of the firm. Best method is
performance based compensation. Boggie (2005), imbalance in terms of lack of recognition and
poor pay often contribute to a problem with employee retention. Chung (1977) also remarks that
if incomes are not market related, this can lead to dissatisfaction and discontent. Ichniowski et al.

 (1997) stated that incentive pay packages very much affect the performance of workers
collective with some other HR practices. If there is a right compensation policy in accordance
with employee performance, the employees will make actual efforts to complete their everyday
jobs (Wright et al, 2003). Concepts such as salary, wage or pay are occasionally used as more or
less having the same significance as compensation (Erasmus et al., 2001).
4.3 Motivation
Motivated employees are needed in our rapidly changing workplaces. Motivated employees help
organizations survive. Motivated employees are more productive. The term motivation is derived
from the Latin term ‘movere’, which means ‘to move’ (Baron, Henley, McGibbon & McCarthy,
2002). Motivation features are recognized to intensively change whether or not individuals are
pleased with their jobs. Motivation has reserved people in crises going throughout centuries; it
has been the cause of increased standards of living, success, fortune, and satisfaction. According
to many, including Todes et al. (1977), the role of motivation in the job atmosphere has huge
importance. The major factors of motivation are one’s needs, rewards, wealth, determined goals,
values and dignity (Vroom, 1990). Porter and miles (1974) proved that the motivation increases
working quality. In fact motivation is “inside one more person’s head and mind” (Khadim et al).
Watson (1994) business has come to realize that a motivated and satisfied workforce can deliver
powerfully to the bottom line. Since employee performance is a joint function of ability and
motivation, one of management’s main tasks, therefore, is to motivate employees to perform to
the best of their skill (Moorhead & Griffin, 1998). Employee motivation is a major issue for any
organization. Managers have always tried to motivate their staff to perform tasks and duties to a
high standard (Al-Alawi, 2005; Mullins, 1996, p. 520). For example, research suggests that as
employees' income increases, money becomes less of a motivator. Also, as employees get older,
interesting work becomes more of a motivator.
Getting employees to do their best work even in strenuous circumstances, is one of the
employees most stable and greasy challenges and this can be made possible through motivating
them.

4.4 Promotion practices
Promotion is a part of HRM practices in an organization. Promotion can create employee
frustration. Promotion can be used as an incentive tool. The employees for meeting the
organizational goals it is a way of reward thus it serves as a mean of synchronizing
organizational goals with personal goals. It will be highly correlated with worker satisfaction if
vacancies were filled with in the organization (Guest, 2002). If there is well established system
of HR practices including merit based promotion in any organization have then the employee
performance is increased (Park et al., 2003). Teseema and Soeters (2006) in his study argued that
there is significantly positive correlation between perceived employee performance and
promotion practices. However he used HR outcomes as mediating variable. Bashir and Khattak
(2008) also said that there is significantly positive relation between promotion and employee
performance.

4.5 Job satisfaction
Job satisfaction is one of the most researched areas of organizational behavior. Job satisfaction is
the employees cognitive, emotional, and evaluative reactions on the way to their jobs (Greenberg
& Baron, 1997; Robbins, 1998). In other words, it is the overall positive affect or feelings that
individuals have toward their jobs (Arnold & Feldman, 1986). According to McCue and
Gianakis (1997) the elements of job satisfaction includes the actual work and its outcomes, or the
intrinsic job satisfaction; pay, benefits, and other rewards directly associated with doing the
work, or the extrinsic job satisfaction; and the environment in which the work is done, including
relation with coworkers organizational culture, the organization’s policies and procedures,
participation in decision making, involvement with the organization, and job status. Newstrom &
Davis (2000) viewed job satisfaction as a set of favorable and unfavorable feelings or emotions
with which employees view their work. Important aspects of job satisfaction may include- pay,
one’s supervisors, the nature of tasks performed, an employee’s co-workers or team, and the
immediate working conditions (George & Jones, 1996; Smith, Roberts, & Hulin, 1976;
Newstrom & Davis, 2000; Newstrom & Davis, 2000). According to Slocum &Woodman (1995)
overall job satisfaction is a collection of numerous attitude toward various aspects of the job,
represents a general attitude (Slocum &Woodman, 1995; George and Jones, 1996). Thus, when
this attitude is positive, employees are said to be satisfied and dissatisfied exists when the
attitude is negative (Moorhead & Griffin, 1989).
The overall job satisfaction focuses on the general inner state of satisfaction or dissatisfaction
within the entity. The feeling of overall satisfaction or dissatisfaction is a holistic feeling that is
dependent on the strength and regularity of positive and negative experiences (Cherrington,
1994).



5.0 Conceptual Framework
In this paper, therefore aims to identify the relationship among the factors such as HRM practices
and employee work -related attitude Conceptual Framework
Job security Compensation   Job satisfaction
Motivation
Promotion
Independent variables        Dependent variable
Figure: Developed Conceptual Framework of Research Variables and their relationships.
5.1 Relationship between Job Security and Job Satisfaction
The telecom sector specifically created a competition by launching new and new products and
services regularly to gain more market share. The employment patterns in the telecom sector
changed rapidly and it became a high volatile market. Today, job security is perceived as an
indispensable right of an employee which guarantees that the employee and his/her family will
not be deprived of their income and maintains an honorable life. Thus, employees consider the
Job security
Compensation
Motivation
Promotion
Job satisfaction
condition of job security just at the beginning of their careers so as to feel confident about the
future. Job security has been included as a fact of job satisfaction in numerous studies
(Greenhalgh & Rosenblatt, 1984). According to Barnett and Brennan (1995) the perception of
job security is strongly associated with job satisfaction or dissatisfaction. Supporting this
statement Davy et al. (1997) presented a model that identified job security directly effects job
satisfaction, organizational commitment, and job involvement. Lambert (1991) identified job
security as an extrinsic comfort that has a positive relation with job satisfaction. According to
Moorhead and Griffin (1989) employees are motivated or satisfied with their job by lots of
different motivational tools including money, benefits, and also including other things like job
security. Job security is one of the most significant variables of employee satisfaction which
expresses the general attitude of the employee towards his/her job (Bakan and Buyukbeşe, 2004,
p. 35). Job security plays an important role in both social and working life because it helps
individuals do not worry about their future, contributes to maintaining labor peace, increasing
organizations’ productivity and protecting social balance and values.
Is there any significant relationship between job security and employee job satisfaction, in the
context of Grameenphone Limited?
There is a significant relationship between job security and employee job satisfaction, in context
of Grameenphone Limited.
5.2 Relationship between compensation and job satisfaction
Compensation is one of the most important elements for employee’s job satisfaction.
Determining job satisfaction there is no doubt financial rewards may play a very influential role.
There are some empirical evidences that there is positive correlation between compensation and
performance (Gneezy and Rustichini, 2000; Gardner et al., 2004). A statistically significant
relationship between pay and rank of employees and their level of job satisfaction was
recognized. There is a positive relation between firm performance and equity based
compensation (Frye, 2004). Compensation plays a very important role to attract and retain the

skilled employees. Many researchers established a positive relation between compensation and
employee performance (Marwat et al., 2009; Bashir and Khattak, 2008; Tessema and Soeters,
2006). Similarly, many researchers said that pay and benefits to be weakly connected with job
satisfaction. Individuals view their compensation as an signal of their value to the organization.
They compare their inputs to received outputs relevant to that of others (Nel et al., 2004).
Compensation can have an influential effect in determining job satisfaction. Frye (2004) study
the relationship among the compensation practices and job satisfaction and examined the positive
relationship among them.
Is there any significant relationship between compensation and employee job satisfaction, in the
context of Grameenphone Limited?
There is a significant relationship between compensation and employee job satisfaction, in
context of Grameenphone Limited.


5.3 Relationship between Motivation and Job Satisfaction
The relationship between job satisfaction and motivation at work has been one of the widely
researched areas in the field of management in relation to different professions, but in
Bangladesh very few studies have explored this concept especially on telecom sectors
employees. Compensate is also a powerful method to bring motivation, because persons can
develop it to achieve their most wanted requirements. As a result, provide a reward that has a
huge impact in establishing employees’ carefulness and loyalty. Since employee performance is
a joint function of ability and motivation, one of management’s primary tasks, therefore, is to
motivate employees to perform to the best of their ability (Hulin and Smith, 1964; Moorhead &
Griffin, 1998). Schultz and Schultz (1998) held the view that job satisfaction encompasses the
positive and negative feelings and attitudes people hold about their jobs, and that these depend
on many work-related characteristics, but also on personal characteristics, such as age, gender,
health and social relationships. According to Cooke (1999) and Fisher (2005), currency is
measured to be the wealth motivator for workers. Conversely revised have shown that pay does
not seem to improve efficiency levels in the stretched term and money does not improve
performance (Whitley, Pearson & Chatterjee , 2002). According to Sempane, Rieger & Roodt
(2002), “Job satisfaction relates to people’s own evaluation of their jobs against those issues that
are important to them.”Additionally, this knows how to decline employees’ attitude in which
they may work simply in the attention of high pay. Such as one employee may be aggravated in
his work to earn upper commission, whereas another employee may be more fascinated for its
satisfaction or the surrounding environment solely (According to Syptak, Marsland, & Ulmer
(1999), these factors can show the way to dissatisfaction condition they are not healthy managed,
but they can not at all guide to positive feelings towards work. Absolutely not, the motivators,
such as determined for development, accomplishment, appreciation and individual appearance,
can create positive approach of job satisfaction.
Research Question 3
Is there any significant relationship between motivation and employee job satisfaction, in the
context of Grameenphone Limited?
Hypothesis 3
There is a significant relationship between motivation and employee job satisfaction, in context
of Grameenphone Limited.
5.4 Relationship between promotion and job satisfaction
Promotion can make a significant increase in the salary of an employee as well as in the span of
authority and control. When an employee makes a shift in the upward direction in organizational
chain of command and moves to a place of better accountability promotion is said to be
happened (Dessler, 2008). It will help out the competitors to discover the most productive
employees in the telecom sector at the same time the employees are being recognized by their
own organization. The employees themselves feel to be an effective contributor and thus will be
more satisfied with their job. Many researchers said that promotion is strongly related with
employee’s satisfaction or dissatisfaction. In this highly competitive telecom sector, Promotion
can help the competing forms to trace the most productive participant of one organization to be
worth hiring for another organization and it will highly related with job satisfaction. Apart from
job satisfaction, the employee satisfaction is determined by satisfaction with promotion. When
employees perceive that there are golden chances for promotion they feel satisfied for the
respective place in the organization (De Souza, 2002).
Research Question 4
Is there any significant relationship between promotion and employee job satisfaction, in the
context of Grameenphone Limited?
Hypothesis 4
There is a significant relationship between promotion and employee job satisfaction, in context
of Grameenphone Limited.
6.0 Research Methodology
6.1 Research Design
The research questions and hypotheses clearly support this model. In this study, the researchers
are going to investigate the relationship between HRM practices and employee work–related
attitude of Grameenphone Limited. When researchers investigates the effects of the measuring
variables and analyses the relationships among the variables, the design is known as Corelational
(Graziano & Raulin, 1997; Zikmud, 2000). That is why a Co-relational research design
has been selected in order to find out the appropriate answers of the research questions and to
test the hypotheses. The model also suggests this type of design. The present “Descriptive”
research methodology uses a correlation study to establish the existence of relationships between
the measured variables. In this research, the researchers intend to identify whether any
relationships exists between these measured variables or not. A Co- relational study provides a
measure of the degree between two or more variables. Therefore, the present study will be
characterized as a co-relational study.
The researchers will gather information from the employees of GP House (Corporate Finance
and Treasury) who is currently appointed at Grameenphone Limited, Bangladesh and use
structured questionnaire for collecting information.
6.2 Sampling
The study will be conducted at GP House (Corporate Finance and Treasury) in Grameenphone
Limited; Bangladesh .The research will be conducted only to the employees of GP House
(Corporate Finance and Treasury) in Grameenphone Limited. Therefore, the question will be
distributed via a convenience and the researcher will use probability sampling. The male
frequency is 33 (70.21%) and female frequency is 14 (29.79%).The sample size was 47 in this
case.
6.3 Survey Instrument
The researcher will use structured questionarries to collect data from the sample. The reason
behind to use the structured questionnarries is its practicality and advantages over other survey
instrument like observation, interview. Questionnaires are very cost effective. Through
questionnaires responses are gathered in a standardized way, so questionnaires are very
objective. Also it is less time consuming. For those benefits the researcher will use structured
questionnaires for this research study. Hence the researcher will use same questionnaires for all
samples. The survey questionnaire consists of two parts. The first part is about the demographic
information of the respondents such as age, gender, educational background, and experience in
existing organization. The second part is in regard to Job security, Compensation, Motivation,
Promotion and Job satisfaction.
As the researcher will use four independent variables and one dependent variable hence the
questionnaires will have five different sections. Job security will be measured using 04 items
(Questions 1-4) developed by Hellgren et al. (1999). Compensation will be measured using 04
items (Questions 5-8) developed by White & Ruh (1973), Hackman & Oldham (1976), and
Uygur & Kilic (2009). Motivation will be measured using 08 items (Questions 9-16) developed
by Blumberg et al. (2005). Promotion will be measured using 06 items (Questions 17-22)
developed by Smith, Kendall, & Hulin(1989). Job satisfaction will be measured using 03 items
(Questions 22-25) developed by Hackman and Oldham’s (1975). The Cronbach’s alpha for job
security is .675. The Cronbach’s alpha for compensation is.016. The Cronbach’s alpha for
motivation is .643. The Cronbach’s alpha for promotion is .759 and based on five-point scale.
The Cronbach’s alpha for job satisfaction is .746. Here alpha denotes reliability of questionnaire.
The higher value of alpha is higher to represent the reliability of the questionnaire.
6.4 Data collection
The present research is a unique and new for GP House (Corporate Finance and Treasury) in
Grameenphone Limited, Bangladesh. As a result, the researcher will require primary data to
investigate the research questions and to collect data from the primary sources. The researcher
will use questionnaire survey method. Questions measuring the factors on a Likert scale ranging
from 1= strongly agree to 5 = strongly disagree. The secondary source was the research paper
where the references were taken when executing the research.
6.5 Data analysis
The proposed study was a correlation study .As a result, after collecting the data the study used
co- relational matrix to identify whether relationships exists between the measured variables or
not. Beside this the researcher calculated the mean and standard deviation of the four
independent variables, to identify the variables have most influence on job satisfaction or not.
For this researcher used SPSS 12.0 because it is such a statistical data analysis tool that offers
greater flexibility in data analysis and visualization.