INDUSTRIAL PSYCHOLOGY PRACTICES IN

ASSIGNMENT

Industrial Psychology Practices In

(BA-2107: Industrial Psychology)

Prepared for Md. Mortuza Ahmed

Lecturer Business Administration Discipline Management & Business Administration School Khulna University

Prepared By
Shuvro Kumar Paul ID: 110326

October 4, 2012

INDUSTRIAL PSYCHOLOGY PRACTICES IN grameenphone

Industrial psychology
Industrial psychology is the study of human behavior in thus aspects of life that are related to the production, distribution and use of goods and services of our civilization. It is of course clear that most people fill different roles in the various aspects of human life in the home, in schools, in social situations, in political activities, in recreational activities etc. as well as the production and use of goods and services. Industrial psychology address itself to the study of behavior in these specific domain of life and to the application of relevant information about human behavior to the solution of human problems in the industrial context. It is one the most important parts of industry sector. It helps to develop an industry with its different types of functions and activates.

Psychological Practice of Grameenphone

Grameenphone is one of the largest mobile network operating companies in Bangladesh. It has been renowned by its various types of activities. It has some strategies behind its development. Psychological practice is one of them.

An overview of GP
Before Grameenphone inception, the phone was for a selected urbanized few. The cell phone was a luxury: a flouting accessory for the select elite. The mass could not contemplate mobile telephony as being part of their lives. Grameenphone started its journey with the Village Phone program: a pioneering initiative to empower rural women of Bangladesh. The name Grameenphone translates to Rural phone.
Page 1

INDUSTRIAL PSYCHOLOGY PRACTICES IN grameenphone

Starting its operations on March 26, 1997, the Independence Day of Bangladesh, Grameenphone has come a long way. Grameenphone pioneered the then breakthrough initiative of mobile to mobile telephony and became the first and only operator to cover 98% of the countrys people with network Since its inception Grameenphone has built the largest cellular network in the country with over 13,000 base stations in more than 7000 locations. Presently, nearly 99 percent of the country's population is within the coverage area of the Grameenphone network. Grameenphone has always been a pioneer in introducing new products and services in the local market. GP was the first company to introduce GSM technology in Bangladesh when it launched its services in March 1997.

Grameenphone was also the first operator to introduce the pre-paid service in September 1999. It established the first 24-hour Call Center, introduced 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 products and services. The entire Grameenphone network is also EDGE/GPRS enabled, allowing access to high-speed Internet and data services from anywhere within the coverage area. There are currently nearly 2.6 million EDGE/GPRS users in the Grameenphone network. Grameenphone has invested more than BDT 17,093 million to build the network infrastructure. There are now more than 1600 GP Service Desks across the country covering nearly all upazilas of all districts and 94 Grameenphone Centers in all the divisional cities. Grameenphone has more than 5000 full and temporary employees. 300,000 people are directly dependent on Grameenphone for their livelihood, working for the Grameenphone dealers, retailers, scratch card outlets, suppliers, vendors, contractors and others.
Page 2

INDUSTRIAL PSYCHOLOGY PRACTICES IN grameenphone

Grameenphone engages in sponsorship to deliver its brand promise and to create mutual benefits for its partners. Grameenphone has been relentlessly supporting different organizations through sponsorships to preserve and glorify our national heritage and patronize the potential developing sectors of Bangladesh.

The basic drive of our sponsorship decision comes from patriotism and the understanding of societal development in different potential sectors. We believe that there is still a large scope to work together and stay close. Today, Grameenphone is the leading telecommunications service provider in Bangladesh with more than 36 million subscribers as of December 2011.

Achievement History of Grameenphone

Started operation on the independence day of Bangladesh in March 1997. Got Bangladesh Business Award for "Best Joint Venture Enterprise"` in 2002. In August 2004, it reached 2 million subscribers. Launched EDGE and Voice SMS service in September 2005 and reached 5 million

Page 3

INDUSTRIAL PSYCHOLOGY PRACTICES IN grameenphone

subscribers on December. Launched Internet Modem and reached 21 million subscribers by 2009. 1st Annual General Meeting of Grameenphone is held in 2010. Now its subscriber number is over 21 million.

Career at grameenphone
Grameenphone create a self-motivation on every employee that makes them the main strength. It is employees who have brought about the phenomenal successes for grameenphone. Career at grameenphone has often leaded employees in making the impossible happen. In their words, We believe we have the zeal and ability to go beyond and constantly bring about changes for the better. Role at grameenphone shall challenge and stimulate an employee in every step of the way, giving him/ her chance to prove if he/ she is a true team player and a leader in the making. Working with grameenphone means being on the winning team, always.

Psychological Attractions for joining grameenphone

Brand Name: For years grameenphone has maintained its brand image. From their saying, We are known amongst the mass and that helps us to relate what we do and how we spend our daily work with the individuals we are, with home, society and even whom we do business with. Huge Employment: grameenphone has a huge employment of more than 4500 people. They make the whole as a family and that is their biggest strength. That's what makes them different. According to them, Our work is unique, our learning & experience dynamic and above all our growth as corporate professionals so fulfilling. Friendly Environment: grameenphone believes in friendly work environment. Starting from the top management, all sit next to each other in GPHOUSE. Openness, transparency, access and parity are at the core of our leadership style. In their saying, We look up to
Page 4

INDUSTRIAL PSYCHOLOGY PRACTICES IN grameenphone

our leaders and they look up to us. Our leaders are our mentor, guide, role models and friends. Grameenphone believes in a 3e approach for learning for employees.

Grameenphone offers a family Feelings:

GP may be diverse with an employee base of more than 4500 but they are ONE BIG FAMILY with a single VISION. Thats their main motivation. They organize Sports Events, Pahela Baishakh, Happy Hearts by Day Care Center for Birthday Celebration, Family day celebration etc.

Job analysis of Grameenphone Every management job is to have a stated purpose and a list of major responsibilities. These should be clearly described and agreed between the incumbent and the
Page 5

INDUSTRIAL PSYCHOLOGY PRACTICES IN grameenphone

superior. The job is to be graded according to its nature and the level of responsibility it carries. Whenever any significant change in the nature of responsibility takes places, the Job Description and specification should be amended accordingly. In December every year the Job Description and job specification of all management position in the grameenphone is to be reviewed and updated at the time when Action Plan meeting is held. In case the job content of any position is found to have changed significantly, a job analysis exercise is to be undertaken with the help of HR Department, Head Office. It is important that the incumbent is given full opportunity to participate freely in the preparation and periodic revision of the Job Description. His/ Her perception and understanding of what is expected of him/her as the incumbent is most crucial for his/her success in the job. The Job Analysis and Job design is prepared before the recruitment is done. The contract signed before joining states the job description of the post the employee is joining. By setting the job description clarifies the tasks he needs to carry on and benefits both the company and the employee himself.

Employee Training
Employee training is the planned effort of an organization to help employees learn the job related behaviors and skills they will need to do their job properly. It is a set of planned activities that the organization will have their employees complete in order to increase their job knowledge and skills and to have them get accustomed to the attitudes and social atmosphere of the company. It will help the employee to be familiar with the goals of the organization and the job requirements. There are typical steps that go into a training program. These are outlined below. 1) Conduct Needs Assessment: A need is described as a "gap" between what is currently known and what will be needed now and in the future. These gaps in knowledge could be between what an organization expects to happen and what actually does, how employees are performing on the job and how the organization
Page 6

INDUSTRIAL PSYCHOLOGY PRACTICES IN grameenphone

desires them to perform, and existing skills and desired skill level. In order to conduct an assessment there are some analyses that must be done. An organizational analysis determines the effectiveness of an organization, where training is needed and under what conditions the training will be conducted. A task analysis is used to provide data about a job or group of jobs, and the knowledge, skills, attitudes and abilities that are needed to achieve optimum performance. This information can come from job descriptions, task analyses, employee questionnaires and interviews, performance evaluation, and observation of the workplace. Finally - person analysis analyses how well an individual employee is doing their job and determines which specific employees need training and what kind of training. The methods of this kind of analysis include employee questionnaires and interviews, performance evaluation, skill and knowledge testing and the observation of behavior and results. 2) Implement Training Methods: Now that the analysis has been done, the training method needs to be chosen. The two most frequently used training methods include: Lecture: Lecture involves one-way communication, from instructor to learner -the learner is passive in the process. On-the-job-training: This method involves such methods as apprenticeship and mentoring, where the employee is actively engaged in the type of work they will later be doing on their own. Programmed instruction: This is a form of instruction that is preprogrammed and then delivered methodologically to an individual. This form of instruction is self-paced -the employee determines how fast they will learn and complete the steps and it is often completed more quickly than group training. It can be delivered via a
Page 7

INDUSTRIAL PSYCHOLOGY PRACTICES IN grameenphone

computer and can be costly to prepare. Simulations: This sort of training involves an employee being placed into a simulated situation of what may occur in real on-the-job situations. Techniques include: Case studies where trainees analyze a problem outlined in a report and offer solutions; role playing where simulated roles are acted out; and behavioral modeling where trainees observe proper work behavior and then role play it. Part of the implementation of the training is making sure that the training is actually teaching the employees the skills they will need - this is known as the Transfer of Training. A more technical definition is: the extent to which the knowledge, skills or attitudes learned in the training will be used or applied on the job. There are ways to increase the probability of what employees are being trained will really relate to their actual job behavior. To do this, one can maximize the similarity between the training situation and the job situation, provide a variety of examples when teaching skills and reward trained behaviors and ideas on the job. 3) Training Evaluation: Training evaluation is used to evaluate the reactions of the learners, measure the learning that occurred, assess on-the-job behaviors, identify business results that are due to the training and calculate if the investment in training has had any return in the gains of the company. Business results can be measured in "hard" data and "soft" data. Hard data are measures of productivity, quality, material costs, absenteeism and turnover and customer satisfaction. Soft data is items such as job satisfaction, teamwork, and organizational commitment on the part of the employees.

Compensation
Page 8

INDUSTRIAL PSYCHOLOGY PRACTICES IN grameenphone

A job is classified according to the skills and experience required for satisfactory performance in the job, the degree of problem-solving involved and the magnitude of the impact of a decision to be taken as an incumbent in the job. The classification is then linked to a salary grade through which a compensation package is made available to the incumbent of a job. Each job makes a contribution to the successful conduct of an activity, which in turn accrues certain benefit to the company. The compensation package, which is an expense incurred by the company, is linked to the benefit derived by the company from the job. Each grade has a minimum level of compensation and a maximum. The minimum is related to the market value of the job and is verified through the availability of suitable candidates who are prepared to join at that level of compensation. The maximum of the grade is the maximum cost the company is prepared to incur for the contribution received from the job.

1. The employee's performance appraisal will be made as usual. 2. Based on the appraisal, performance Bonus will be payable as usual. 3. If the performance of the employee who has already reached the top of his grade is "Very Good" or above he will get only one increment for the year. The year in which the performance rating is below "Very Good" the employee will not get any increment. In this manner the employee will be able to go up to 4 steps in Basic Salary beyond his grade maximum and thereafter the basic salary will not increase any further. The allowances that are linked with basic salary will proportionately increase. The allowances that are not calculated as a percentage of the Basic Salary will be paid at the level of the grade maximum. 4. If an employee has not reached the top of his grade yet but his normal increment, according to his performance rating, will take him beyond his grade maximum, he will be able to reach only one increment beyond his grade maximum that year. From next year clause 3 will apply.
Page 9

INDUSTRIAL PSYCHOLOGY PRACTICES IN grameenphone

It is hoped that employees who get stuck at the top of their grades will seek advice and guidance from General Manager, Corporate Services about how to prepare themselves for higher grades.

Festival Bonus:
The company started payment of Festival Bonus to the Management Staff from the year 2000.There will be disbursement of an amount equal to one months Basic Salary of the employee on two designated festivals. Management Staffs those are in the employment of the Company for at least three months after their confirmation on the date of the festival will be eligible for the Festival Bonus. The major festivals recognized are the following: 1. 2. 3. 4. 5. Eid-ul-Fitr Eid-ul-Azha Durga Puja Christmas Buddha Purnima

All employees of the Company, irrespective of their religion, will draw one Festival Bonus during the time of Eid-ul-Fitr. The other Festival Bonus will be given to the Muslim employees during the time of Eid-ul-Azha. Employees other than Muslim will receive the other bonus according to their festival mentioned above. Festival Bonus will be disbursed in cash and will be paid two weeks prior to the festival date.

Motivation
Page 10

INDUSTRIAL PSYCHOLOGY PRACTICES IN grameenphone

The Appraiser, on the other hand, must make a realistic comparison between standards agreed and those achieved; and keep in view unanticipated constraints which could not have been overcome through other initiatives or innovative actions. Needless to emphasis that rating of overall performance is not an exercise in numbers. The external and internal environment in which the job was performed and the threats and opportunities that were encountered should be taken into account while determining the score. Above all, while judging the overall performance both parties must keep in view the performance during the whole year and guard against the fact that recent issues and events may unduly influence their judgment. The Appraisal Rating will determine the quantum of Performance Bonus the Appraise will get and the level of Annual Increment of basic salary that will be applicable at the time of salary review in the following July. The main topics areProfit sharing: The most significant employee benefit offered by Grameenphone Ltd is Profit Sharing. The profit sharing takes place once a year: July. Only the senior employees who are around two or more years get 20% share of the profit earned. Out of this 20% profit, 75% is distributed in terms of seniority and designation and the rest 25% is distributed on performance in that period Performance Bonuses: Performance bonuses are given on the basis of performance in a given year. This happens after the yearly appraisal. The reviewer (usually the immediate boss) notes down the performance of the employee on a given set of characteristics and sends it to the MD. The MD then takes the decision on the performance bonus. However, all decisions regarding performance bonuses by the MD needs to be approved by the Board of Governors Rewards: This reward system does not have any fixed criteria. This is basically an additional reward system, which provides financial incentives to employees for extraordinary performance in any area of their job.

Page 11

INDUSTRIAL PSYCHOLOGY PRACTICES IN grameenphone

Services Benefits: Soft Option has a number of service benefits which is typically not found in other companies. Among the benefits are Flexible working hour: one can start their office on 8am in the morning and leave by 4pm Provide transport or transport bills while attending a client meeting Provide lunch from the office which is prepared in the office have provision for the employees to participate in different training program and as well fund any professional certification exam from IBM, Sun, Microsoft, Oracle, etc. at companys own cost.

Yearly Picnic/Tours: Grameenphone Ltd bears the expense of one tour/picnic per year for each employee. The company covers all transport, hotel and food expenses. This usually refreshes the employees a lot and makes room for them to interact and know each other better

Employee benefit
For employee safety and health the company gives medical Benefit for All Permanent Staff: 1. In case of hospitalization of the staff, spouse or any dependent child, in any recognized hospital or clinic, the Company will reimburse 50% of the hospitalization charges, which will include bed/cabin rent, doctors fees and laboratory tests & medicine required during the period of hospitalization. All other charges will be borne by the staff.

Page 12

INDUSTRIAL PSYCHOLOGY PRACTICES IN grameenphone

2. In case of surgery, the Company will reimburse 75% of the total operation charges comprising of surgeons fee, anesthetists fee & O.T. charges and cost of medicine related to the surgery. 3. Prior approval from the Head of the Business is necessary before hospitalization or surgery. The name of the patient and the name of the hospital/clinic need to be stated while taking the approval. 4. Department Heads will approve advance against surgery for staff on a case-tocase basis. 5. Expenses for Delivery under Caesarean Section will be reimbursed as per clause 2.Reimbursement of more than two children will not be allowed. These rules will be subject to modification from time to time at the discretion of the Company.

Employee Safety & health:

Grameenphone practices a psychology that covers employ safety and health. They ensure a safe and healthy environment for the workers to work with and a safety motivation for increasing enthusiasm and attractiveness. 1) A case of hospitalization of the staff, spouse or any dependent child, in any recognized hospital or clinic, the Company will reimburse 50% of the hospitalization charges, which will include bed/cabin rent, doctors fees and laboratory tests & medicine required during the period of hospitalization. All other charges will be borne by the staff. 2) In case of surgery, the Company will reimburse 75% of the total operation charges comprising of surgeons fee, anesthetists fee & O.T. charges and cost of medicine related to the surgery. 3) Prior approval from the Head of the Business is necessary before hospitalization or surgery. The name of the patient and the name of the hospital/clinic need to be stated while taking the approval. 4) Department Heads will approve advance against surgery for staff on a case-tocase basis. 5) Expenses for Delivery under Caesarean Section will be reimbursed as per clause 2.Reimbursement of more than two children will not be allowed. These rules will be subject to modification from time to time at the discretion of the grameenphone.
Page 13

INDUSTRIAL PSYCHOLOGY PRACTICES IN grameenphone

Job Satisfaction of grameenphone: In context of Maslows Hierarchy of needs:

Abraham Maslow explored a hierarchy of needs, from the most basic physical needs to the most internal needs for self-actualization, and found that individuals respond to motivation that meets their lowest need at a particular point in time. This approach to motivation holds considerable potential for companies willing to apply it to their personnel practices. Some major impacts of the two theories are visible in every aspect of Grameenphone ltd. The motivation level of employees in Grameenphone is increased by the various facilities that reflect Maslows needs hierarchy.

As from theoretical perspective Maslows hierarchy of need seems to be strong in Bangladesh Context, where people seems follow visible needs rather than preferring challenges in the workplace in actuality results indicate employees perception toward goal is very strong. The aim of this observation was to find out the practical impact of the most relevant motivational theories in Grameenphone and describe in which issues these theories have made a substantial impact.As Maslows theories
Page 14

INDUSTRIAL PSYCHOLOGY PRACTICES IN grameenphone

state that an individual will be motivated to fulfill his first need, which is a physiological need. Grameenphone seems to be strongly influenced by this part of the theory. The minimum salary for the lowest managerial position in Grameenphone is 28,000 taka and in the call center starting salary is 10,000 taka. Maslows physiological needs mean the biological needs human requires surviving such food, clean water. So it is clear that a Grameenphone Employee has better probability to satisfy the biological needs as the monthly salary is higher than most of the other companies in Bangladesh. This higher salary policy has proved milestone for Grameenphone. As it offers a handsome salary at the very starting point of career Grameenphone has been able to recruit the most highly skilled employees. A high salaried job is much more attractive to the freshly graduated skilled applicants. This salary philosophy (putting more money to the base salary) has also helped them keeping the skilled productive workforce at their company. Their motivation also increases by the paid training period which Grameenphone offers. Most of the companies in Bangladesh keep an unpaid training period on the other hand Grameenphone paid training program are more lucrative to the trainees and it motivates them to response to the training opportunity eagerly. Maslows safety need is emphasized in Grameenphone ltd. They have included so much to make employees more protected, secure and stable in their workplace. Grameenphone ltd is building a pension fund for it employees. It also invests in a provident fund. 10% of the salary is paid on a monthly basis into the fund. Employees are also entitled and covered by health and medical insurance. This also applies to family member. Grameenphone also provides monthly education grants for children under age of 21 to all employees. The grant is fixed for each child. This type of financial security has made Grameenphone employees more comfortable at their jobs. As our results suggest that the medical insurance is very useful to every employee. They are mainly using it for their sick parents of elderly persons in the family. The workplace has also taken into account to give the employees best safety at the place. Sophisticated software and computerized security system to keep the whole place from the safety of fire, theft, robbery and any kind of unwanted event. Another issue in within the Grameenphone employees is child care service. Around half of the employees are woman and among them around two third are married and with little children. Over half of them missed office because of some child issues. So Grameenphone would make this female employees more motivated if they plan to provide a child care service in the office space. Maslows social need indicates love, affection, and a sense of belongingness in one's relationships with other persons. Examples of these needs are work groups, teamwork, and company good relationship with co-workers. Humans are inherently social and friendly creatures, and to deprive this need for affection will prohibit the individual from obtaining a higher plateau on Maslow's hierarchy. Friendships are
Page 15

INDUSTRIAL PSYCHOLOGY PRACTICES IN grameenphone

beneficial to humans at home and in the workplace, but some employers do not realize the importance of this association. We are all aware that humans form meaningful relationships outside of the workplace, but the value of establishing enjoyable relations within the workplace is often underestimated. Research has shown that promoting social interaction among employees will "increase morale and productivity. In our observation we have found that Grameenphone requires each employee to attend in the discussion time of the team work to strengthen interpersonal relationships. Also a new employee need to attend the orientation and after that he/she stays under supervision of two or three experienced colleague and a senior supervisor during the training period to alleviate the left out feeling of a new comer. Maslow defined esteem needs as the level of fulfillment a person feels in the workplace such as respect, prestige, recognition, need for self-esteem, personal sense of competence and mastery in opinion, humans are egocentric, and everyone likes to be praised. This is part of this need fulfillment. Results states at Grameenphone employees like to be appreciated and recognized for job .This motivates them to continue working hard for the company. Performance bonuses are given on the basis of performance in a given year. This happens after the yearly appraisal. The reviewer (usually the immediate boss) notes down the performance of the employee on a given set of characteristics and sends it to the MD. The MD then takes the decision on the performance bonus. However, all decisions regarding performance bonuses by the MD needs to be approved by the Board of Governors. Most lucrative to mention about rewarding provided by the recognition for Employee of the Month is made each month that drives the employee motivation level to greater extent. The last level of Maslow's hierarchy, the pinnacle of achievement, is the Level of self-actualization. The need to grow and use one's abilities to the fullest and most creative extent. Grameenphone offer challenging and meaningful work assignments which enable innovation, creativity, and progress according to longterm goals. There is a saying-"What a man can be, he must be. This need we may call self-actualization. According to our observation in Grameenphone each year around 2% employee reaches this phase where they feel their potential is truly paid off (employees who get promoted at the top level management).
Page 16

INDUSTRIAL PSYCHOLOGY PRACTICES IN grameenphone

Performance Appraisal
IN grameenphone performance appraisal doesnt play a great role. Reason behind that is its not a government organization but its an important part of organization. In grameenphone every employee has a service book which is written by his senior if employer not does his duty well then his senior mark in his service record book which create problem for gating promotion etc. Performance appraisal: grameenphone limited follows different types of method to evaluate his employee performance and accordingly they provide incentives and perk to them as well as promotion and pay rise. ITI also get done its HR audit during period of 2002 to 2005 which included many of its office along with headquarters. Audit objectives:i. ii. iii. iv. v. vi. vii. viii. ix. x. The manpower planning done by the Company was adequate to meet its Objectives. The Company ensured optimum deployment of manpower. The Company introduced new recruitment policies and practices and Whether they were adequate Well defined, fair and transparent career progression policies and practices were in place. Well defined, fair and transparent transfer policies and practices were in place An effective performance management system was in place The training imparted by the Company was effective Clearly defined and effective conduct and disciplinary rules were in place Incentive and welfare policies and practices were effective. An adequate exit policy had been formulated and implemented by the Company.

But the finding which came out was something different than the thinking of management. The committee has given emphasis on the need of regular staff training, staff norms and a heavy investment to upgrade the knowledge base of employees. There were many personnel in different part of organization who were idle and required to be deployed to be utilized effectively. ITI also keep record of it employee in form of Annual confidential report (ACR)
Page 17

INDUSTRIAL PSYCHOLOGY PRACTICES IN grameenphone

which is used to compare with the target set for them by the company. The company also follows open review system for judging the performance of individuals. In this system, the superior officer discusses the self-appraisal submitted by his/her subordinate so as to make the appraisal of his/her performance totally transparent.

Conclusion
Ensuring efficient psychology practice and proper utilization of resources is prerequisite for achieving the organizational objectives because resources are limited and the proper exploitation of the available resources can help to achieve the top position. Grameenphone ensures a efficient psychological practice that enables every employee to work with them. They believe in Family and team approach that is their main strength. They generate an idea among the human resources that they are important part of the organization by providing reasonable wages/salary, incentives, compensation, training and development program, as well as creating morale and maintaining a good relationship with them. They believe in, What a man can be, he must be and motivates employees. Overall, grameenphone is a well-structured company and practices psychology in a broader sense.

Page 18