Job Analysis & Job Evaluation

August 3, 2010

INTRODUCTION

i) ORIGIN OF THE REPORT:

This report is prepared with the respect to three-month course of Job Analysis and Performance Appraisal. I am assigned to prepare a term paper by our reverent Dr. Nargis Akhter, Associate Professor. My task is to do job analysis and job evaluation.

ii) OBJECTIVES OF THE TERM PAPER:

Broad Objective: To broadly learn and know about the method of preparing job analysis and job evaluation. Specific Objective: To know how organizations of Bangladesh prepare job analysis for their own organizations and evaluate respective job and hence fix total compensation.

iii) METHODS: a) Sources of data collection:

Data are mostly collected from two organizations: Janata Bank and Grameenphone primary sources are mostly used and also a few secondary sources for preparing the report: o Primary sources: Primary sources are the individuals of the organizations who are aware of the human resource practices for that organization and helped to collect the information by answering the questions and filling up the questionnaire given to them. o Secondary sources: Secondary information was collected from the internet about comprehensive information about job analysis and job evaluation system.

b) Scope of the study:

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

iv) LIMITATIONS OF THE STUDY:

Some difficulties were faced while preparing this report such as Access to the internal information to various organizations. Time constraint Text constraint

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PART 1

JOB ANALYSIS

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CHAPTER-1 CONCEPT REVIEW

i) MEANING OF JOB ANALYSIS:

Job Analysis is a process to establish and document the 'job relatedness' of employment procedures such as training, selection, compensation, and performance appraisal. Detailed examination of the following factors is analyzed: 1. Tasks (performance elements) that make up a job (employee role), 2. Conditions under which they are performed, 3. What the job requires in terms of aptitudes (potential for achievement), attitudes (behavior characteristics), knowledge, skills, and the physical condition of the employee.

ii) OBJECTIVES OF JOB ANALYSIS INCLUDE:

1. Determination of the most efficient methods of doing a job, 2. Enhancement of the employee's job satisfaction, 3. Improvement in training methods, 4. Development of performance measurement systems, and 5. Matching of job-specifications with the person-specifications in employee selection. Comprehensive job analysis begins with the study of the organization itself: its purpose, design and structure, inputs and outputs, internal and external environments, and resource constraints. It is the first step in a thorough understanding of the job and forms the basis of job description that leads to job specification. It is also known as human resource audit, job study, or occupational analysis.

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iii) METHODS OF JOB ANALYSIS:

Interview Observation Questionnaire On-Line Forms

iv) JOB DESCRIPTION:

A job description is a list of the general tasks, or functions, and responsibilities of a position. Typically, it also includes to whom the position reports, specifications such as the qualifications needed by the person in the job, salary range for the position, etc. A job description is usually developed by conducting a job analysis, which includes examining the tasks and sequences of tasks necessary to perform the job. The analysis looks at the areas of knowledge and skills needed by the job. Note that a role is the set of responsibilities or expected results associated with a job. A job usually includes several roles.

iv) PURPOSE OF JOB DESCRIPTION:

The objective of a job description is to have a clear outline of duties and responsibilities to make the screening process as direct and focused as possible. Job descriptions may have the following elements:

improvement cooperation by giving all members of the organization insight in existing responsibilities/roles enabling career moves within the organization determination of amount of pay per function increase of results by specification of responsibilities and key performance indicators development of job owner by specification of competences may include the phrase "perform other duties as assigned"

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iv) JOB SPECIFICATION:

It denotes the personnel requirements of a particular job. A job specification sets forth the skills, education, and experience required for a particular position.

CHAPTER-2 JANATA BANK

i) AN OVERVIEW:
Janata Bank is a nationalized commercial bank that was established under the BANGLADESH BANKs Nationalization Order 1972. It was created by taking over the branches of two abandoned Pakistani banks-the United Bank and Union Bank, which functioned in East Pakistan. With its head office at Dhaka, the bank started its operations with an initial authorized capital of Tk 50 million and paid up capital of Tk 10.5 million. The authorized capital was raised to Tk 30 million in 1973. Since then the authorized and paid up capital remained unchanged till December 1983. Later, both were increased from time to time and their amounts stood at Tk 8 billion and Tk 2.594 billion respectively on 31 December 2000. The reserve funds of the bank on that date were Tk 367 million. In addition to traditional deposit taking in various accounts and providing loans to almost all sectors of the economy, the bank offers different types of other services and conducts 'offbalance sheet (OBS)' activities. The value of assets created by the OBS activities of the bank

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was Tk 26.07 billion in 1998 and Tk 25.46 billion in 2000. The agency services of the bank include making payments to different public sector corporations and acting as paymaster in the government's food procurement scheme. The bank provides loans and advances to not only the clients of selected groups like the traders and industrialists but also to people of all classes and professions. Side by side with industry and commerce, agriculture and other priority sectors also receive funding and advisory services support from the bank. Janata Bank disburses government grants to the teachers of private and public educational institutions. Janata Bank has a large participation in foreign exchange business including overseas remittance services. The total volume of foreign exchange business handled by the bank in servicing imports and exports and remittances during 1999-2000 amounted to Tk 40.312 billion. In 2000, the bank had correspondent relationships with 1,180 foreign banks/bank offices. In 1972, Janata Bank started its banking operations with a total initial deposit of Tk 1.57 billion; ever since the bank has been making continuous and sustained efforts to mobilize deposits from untapped resources in both urban and rural areas. A special deposit mobilization program introduced by the bank in 1976 resulted in remarkable increases in the volume of its deposits, which grew at a rate of approximately 63% and 42% during 1972-74 and 1978-80. The deposits growth rate in 2000 was 8.2%. The volume of loans and advances of the bank was Tk 1.13 billion in 1972 and it increased to Tk 5.28 billion in 1984. Major areas that received financing from the bank were jute trade, jute industries, tanneries, sugar industries, textile trade and industries, transport, iron and steel, tea plantation and trade, livelihood trades/income generating activities and housing. The credit portfolio of the bank expanded manifold after the 1980s and covered almost all sectors of the economy. The bank was a major participant and a provider of funds in the Tk 10 billion Special Agricultural Credit Program (SACP) launched by the government in 1977. The total amount of its loans and advances stood at Tk 80.95 billion in 2000. Loans and advances provided by the bank to the broad economic areas up to 30 June 2000 were: agriculture and fisheries - Tk 4.362 billion, industry (small and cottage, and large and medium) - Tk 32.352 billion, retail/wholesale trade and hotels and restaurants - Tk 5.215 billion, transport & communication and storage - Tk 331 million, special credit program including poverty alleviation - Tk 1.698 billion and others - Tk 18.862 billion.

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During 1999, Janata Bank disbursed Tk 16.383 billion in loans and advances and the recovery during the year was Tk 4.541 billion. In 2000, the recovery rate was 20% of total outstanding loans. The amount of overdue loans and advances on 30 June 2000 was Tk 27.34 billion and on 30 June 2000, the ratio of total overdue to total outstanding loans was 37.12%. Poor loan recovery and the increase in the amount of overdue loans caused a fall in the quality of its lending assets. The bank's total classified loan amounted to Tk 23.63 billion on 31 December 2000. Up to December 2000 the bank's loans to the public sector were Tk 15.9 billion, of which Tk 2.15 billion was classified. 19.6% of the bank's total loans and advances went as borrowings to the public sector enterprises. Up to the same date, the bank disbursed Tk 5.603 billion as rural credit including Micro credit. On the other hand, the bank borrowed Tk 2.16 billion in 1998 and Tk 2.08 billion in 2000 from the inter-bank market. The credit-deposit ratio of the bank was 77.95% in 2000. On 31 December 2000, the liquid assets of the bank were valued at Tk 36.22 billion. In 1999, the interest rate offered by the bank on savings deposits in both rural and urban areas was 7.5%, while the rates charged by it on loans in different sectors averaged 12.65%. On 31 December 2000, the total and net incomes of the bank were Tk 9.25 billion and Tk 829.2 million respectively. However, an increase in the volume of classified loans weakened the quality of the bank's assets. An increase in operating and interest expenses of the bank slowed down the rate of growth of its total incomes in 1999-2000. Janata Bank monitors its work through a performance budget. It has a marketing intelligence unit and conducts a program of human resources development through training and motivation. It introduced the Lending Risk Analysis suggested by the Financial Sector Reform Program. Business policies of the bank in the 1990s included fulfilling capital adequacy requirement, mobilizing deposits in large amounts, and making investments in more profitable ways. The bank diversified its activities in off-balance sheet items to expand its area of operations and increase non-interest based incomes. The management of the bank is vested in a 7-member board of directors appointed by the government. The managing director is the chief executive and he is assisted by a deputy managing director, six general managers and other senior executives. The general managers are in charge of the bank's branches in six administrative divisions of the country namely,

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Dhaka, Chittagong, Rajshahi, Khulna, Sylhet and Barisal. At the head office, the bank has 27 departments including a training institute. On 30 June 2000, the bank had a total of 17,138 employees. Up to 31 December 2000, the bank had 894 domestic and 4 overseas branches (in the Middle-East). Among the domestic branches, 348 were in the urban areas and 546 in the rural areas.

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ii) THE REASONS BEHIND CHOOSING THE POSTS IN THREE DIFFERENT LEVELS:

A. Why Officer? Among all entry-level posts, officer rank is the most dimensional one. The officers of Janata Bank get various opportunities to learn different tasks through job rotation. An officer generally experiences different tasks getting involved in different sections such as HRD, HRDD, JBTI, WD etc.

B. Why Senior Principal Officer? Senior Principal Officer takes part in decision making process and planning the strategies for the Bank. They are ultimately responsible to execute the final decisions taken by the top management and prepare the employees for following the taken decisions. They also monitor and control the whole process and provide timely feedback depending on the employees, performance. The Senior Principal Officer actually makes a bridge of communication between the top level and entry level employees which is necessary for implementing the strategies. They also find out the lacking areas where there is a need for recruitment or training.

C. Why First Assistant General Manager? First Assistant General Manager is a newly introduced top level post in Janata Bank. As the top management (AGM & GM) was previously facing problems in policy and decision making, this post is introduced to be a representative for the top management who will work with the Senior Principal Officer in the field. They possess the authority to take decisions on behalf of the top management. It has significantly reduced the possibility of biasness by the Senior Principal Officer. They also suggest solutions to the AGM and GM according to the lacking areas found by the Senior Principal Officers.

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CHAPTER-3 FINDINGS OF THE STUDY

i) THE SUGGESTED JOB ANALYSIS:

ENTRY LEVEL POSITION:

Job Title: Officer Department: Human Resource Department Position Code: 01-06

Activities to be performed:
Maintains employment rsum, application forms, and applicant flow logs in line with company policy. Retains records in line with company record retention requirements Maintains employee personnel files in line with company policies and government regulations.

Job Duties:
Daily Duties performed at irregular interval

Monitory Responsibility:
Line managers and the other executives.

Delegation of Authority:
Monitors and controls the line managers activities Take decisions about rewarding or punishing them

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Has the authority to take any step to manage conflicts.

Reporting Relationship:
Report to the senior officer.

Knowledge, Skill and Ability:

Computer literacy Proficiency in English Communication skill Hard working capability Integrity Loyalty Accountability etc.

Educational Requirements and Experience:

Title of the job

Age

Qualification

For Promotion

Required grade is second class or CGPA equivalent to second class for Officer 21-30 B.com, (Post Three years in the existing Graduates will get preferences) from job. reputed institutions. First division for SSC and HSC. B.com Honors,

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MID LEVEL POSITION:

Job Title: Senior Manager Department: Human Resource Department Position Code: 01-03

Activities should be performed:

Developing policy and Procedure for Recruitment and selection. Implementing taken strategies. Guiding officers and managers. Evaluating the subordinates performance by observing them. Report to the direct supervisors such as to AGM or GM.

Job Duties:
Daily Duties performed at irregular interval

Monitory Responsibility:
All the entry level employees.

Delegation of Authority:
Monitors and controls the subordinates activities and Take decisions about rewarding or punishing subordinates Evaluates subordinates performance

Reporting Relationship:
Report to the Assistant General Manager.

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Knowledge, Skill and Ability:

Computer literacy Proficiency in English Communication skill Monitoring and controlling power Decision making ability Leadership qualities Integrity Loyalty Influencing capacity Ability to make bias free judgment etc.

Educational Requirements and Experience:

Title of the job

Age

Qualification Required grade is second class or CGPA equivalent to second class for B.com, B.com Banking, Honors,

For Promotion

(Post Three years in the or

Senior Manager

45-50

Graduates will get preferences) in existing job. Finance, Economics Accounting from reputed institutions. First division for SSC and HSC.

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MID LEVEL POSITION:

Job Title: Assistant General Manager Department: Human Resource Department Position Code: 01-02

Activities should be performed:

Guiding and supervising all mid level employees. Taking care of the whole strategy implementation process. Allocating and controlling budget. Monitoring and evaluating employees performance and designing compensation package accordingly. Maintaining a friendly working environment through managing conflicts and counseling. Ensure the co-ordination of this department with all other department.

Job Duties:
Daily Duties performed at irregular interval

Monitory Responsibility:
All the mid level employees.

Delegation of Authority:
Participates in taking decisions about the major HR activities like recruitment, compensation, promotion, designing training, performance appraisal.

Reporting Relationship:
Report to the General Manager.

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Knowledge, Skill and Ability:

Computer literacy, proficiency in English Communication skill Monitoring and controlling power Decision making ability leadership qualities Integrity Foresightness Ability to make bias free judgment etc.

Educational Requirements and Experience:

Title of the job

Age

Qualification

Post Graduation (CA/FCA /MBA) from reputed institutions in Finance, Banking, Assistant General Manager 50-55 Economics or Accounting. . Total experience of 20 years in relevant field with 1 year in the post of Deputy Managing Director.

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ii) JOB DESCRIPTION FOLLOWED IN JANATA BANK:

A.

Job Description for Entry Level Position

Job Title: Officer Department: Human Resource Department Essential functions of the job: Keep the logs of the employees rsums, applications,
performance appraisals of previous years, and incentive records. They also maintain records of all the information regarding training need assessment, training programs conducted previously and individual employees improvement level in those training. The records of increments and festival bonuses allocated to the employees are also maintained by them.

Job context: Officer must follow the instructions given by the senior officers, Service Area
managers and cooperate with the line managers and employees.

Reporting relation and other activities: The officers have to report to the departmental
Manager. They have to frequently contact with Manager, Heads of Service Areas, line managers and other staff. Specific matters/cases should be discussed directly with the Principal Officer and Senior Principal Officer. Developing the practice of collaboration, communication and counseling amongst other HR colleagues.

Challenges of this job:

The rank holder face challenges to identify and promote opportunities and solutions of various problems in a changing environment. To work with the HR Team in relation to equal opportunities and employee welfare often in a cross functional working groups whose inspirations have a substantial impact on HR practices.

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Other requirements of the position (mental and physical factor): The candidates
have to be mentally and physically fit for the job because they have to do some field works and sometimes they may stay in the office for longer hours.

Knowledge and experience required:

A high level of interpersonal skill, communication skill and Trainability is needed. Work related knowledge and proficiency in English is compulsory.

Title of the job

Age

Qualification Candidates are expected to take their educational degrees

21-30 Officer

from reputed institutions. Required grade is second class or CGPA equivalent to second class for B.com, B.com Honors, (Post Graduates will get preferences), First division for SSC and HSC.

B.

Job Description for Mid Level Position

Job Title: Senior Principal Officer Department: Human Resource Department Essential function of the job: As Human Resources (HR) Managers they must have a
clear concept about their organizations business objectives and be able to implement policies and follow appropriate methods which will help to select and retain the right person at the right position to meet those objectives.

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Policy making and interpretation: Developing coordination with other departments,

assisting line managers to understand and implement policies and procedures.

Job context:

Maintain, review and update proper filing of HR handbook, performance appraisal forms and training schedules of the organization. Planning and preparing annual report and updating the replacement chart. Take part in preparing compensation package for designated employees. Maintains agreement/contract of employees. Designs yearly manpower planning and expansion Assist in drafting out Annual Letters and Promotion Letters. Manages and evaluates subordinates' performance and the need of their career development.

Planning and developing training program:

Conducting Training Need Assessment. Make plan and Conduct training program for the existing and new employee of the organization according to the TNA result. Identify Training Need both individually and department as a whole. Coordinates with external and internal trainers. Evaluates employee performance in the training programs and give them timely feedback.

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

Challenges of this job:

The post holder is challenged to take part in decision making, developing policy and strategy which will help the organization to compete with other leading ones and sustain in the long run. Generates innovative ideas for the welfare of the organization.

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

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

Knowledge and experience required:

Title of the job

Age

Qualification Candidates are expected to take their educational degrees from reputed institutions. Required grade is second class or CGPA equivalent to second class

Senior Principal Officer

Max 52

for B.com, B.com Honors, Post Graduate, and First Division for SSC and HSC. Area of Education: Finance, Banking, Economics or Accounting.

C.

Job Description for Top Level Position

Job Title: First Assistant General Manager Department: Human Resource Department Essential function of the job: Provide administrative and technical human resource
assistance to Principal and Senior Principal Officers in the local department.

Policy making and interpretation: Developing Policy and Procedure. Ensure that the
Principal and Senior Principal Officers have a clear understanding about the objective and strategy of the organization. Allocate all the necessary resources to carry out the tasks.

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Job context:
Forecast the required manpower and budget for the training program. Preparing performance appraisal and preparing compensation package for all employee. Instruct and supervise other managers to execute the operation. Monitor the gradual improvement in every level of the departments. Managing conflict and ensuring healthy working environment.

Reporting relation: The First Assistant General Manager have to report to the General
Manager and the Assistant General Manager. Specific matters discussed direct with the General Manager and Head of the department. Communicate with all other departmental head.

Challenges of This Job:

Developing Strategy according to the need of the changing technology and economical environment. Participating in policy and decision making in supervision of the AGM and GM and implementing that timely. Creating a friendly and supportive environment for the employees. Handling critical situation and come up with instant solution.

Other requirements of the position (mental and physical factor): The candidates
have to be mentally and physically fit for the job because they may have to visit other branches for inspection.

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Knowledge and experience required:

Title of the job Age Qualification Candidates are expected to take their educational institutions. Area of Education: Finance, Banking, First Assistant General manager Max 55 Economics or Accounting(CA/FCA/A CMA/FCMA/MBA/BIBM). Total experience of 22 years in relevant field with 1 year in the post of Additional Managing Director or Deputy Managing Director. degrees from reputed

CHAPTER-4 RECOMMENDATION & CONCLUSION

The job analysis data collected from Janata Bank is organized and full of information. Janata Bank has explained all the job duties and responsibilities and necessary requirements for performing those duties in detailed manner. The tentative job analysis done by me is prepared in a highly structured format which clarify the job description and specification. Hence, it becomes so easy to understand that anyone can have a clear idea about the job just at a glance. Whilst, the Job Analysis of Janata Bank is prepared in a descriptive way which may take more time to be understood. In my job analysis I have suggested the delegation of authority from which an employee can easily understand ones autonomy and limitations in the job. Besides, I have also suggested the position number which illustrates the chain of command inside the department; and the

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required years of experience which provides a clear direction of an employees career development.

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Conclusion:
In conclusion, after visiting Janata Bank and collecting their Job Analysis report I have realized that HR prospects in Bangladesh are gradually increasing and developing as well. According to my observation, the HR activities of Janata Bank are more structured than I have expected. But my suggested Job Analysis is organized and easily understandable. Some significant differences between the real scenario and my suggestion might be recognized as I have followed the theoretical direction based on my prediction. However, I think and hope I have successfully assumed the factors accurately in preparing this Job Analysis.

Reference & Bibliography:

Performance Appraisal and sample appraisal templates and 360 degrees appraisals,

http://www.businessballs.com/performanceappraisals.htm Introduction to Performance Appraisal,

http://www.performance-appraisal.com/intro.htm Performance Appraisal Wikipedia, the free encyclopedia.

http://en.wikipedia.org/wiki/Performance_appraisal Job Analysis - Wikipedia, the free encyclopedia.,

http://en.wikipedia.org/wiki/Job_analysis Job Analysis Definition of Job analysis

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

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PART 2

JOB EVALUATION

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CHAPTER-1 CONCEPT REVIEW

i) MEANING OF JOB EVALUATION:

Job evaluation is the process of systematically determining a relative internal value of a job in an organization. In all cases the idea is to evaluate the job, not the person doing it. Job evaluation is the process of determining the worth of one job in relation to that of the other jobs in a company so that a fair and equitable wage and salary system can be established. Job evaluation is a practical technique, designed to enable trained and experienced staff to judge the size of one job relative to others. It does not directly determine pay levels, but will establish the basis for an internal ranking of jobs.

ii) PRINCIPLES OF JOB EVALUATION:

1. Clearly defined and identifiable jobs must exist. These jobs will be accurately described in an agreed job description. 2. All jobs in an organization will be evaluated using an agreed job evaluation scheme. 3. Job evaluators will need to gain a thorough understanding of the job 4. Job evaluation is concerned with jobs, not people. It is not the person that is being evaluated. 5. The job is assessed as if it were being carried out in a fully competent and acceptable manner. 6. Job evaluation is based on judgment and is not scientific. However if applied correctly it can enable objective judgments to be made. 7. It is possible to make a judgment about a job's contribution relative to other jobs in an organization. 8. The real test of the evaluation results is their acceptability to all participants.

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9. Job evaluation can aid organizational problem solving as it highlights duplication of tasks and gaps between jobs and functions.

iii) OBJECTIVES OF JOB EVALUATION INCLUDE:

The main objectives of job-evaluation are as follows: 1. Job evaluation is used to determine the relative worth of every job. Relative wages may be fixed on the basis of an objective evaluation and comparison. 2. It establishes the general wage level, which could be comparable with factories nearby. 3. It provides a basis for ranking different jobs. 4. The relative worth and wage-structure of a new job may be easily established in comparison with the established jobs. 5. It helps in establishing line of authority, responsibility and accountability. 6. It provides a sound basis for wage negotiation. It reduces grievances of workers due to improper wages. It eliminates wage inequality within the organization. 7. Job evaluation is useful in the selection and recruitment process, as skill match with job profile may be achieved. 8. It is helpful in achieving cordial relations between management and union. 9. It provides a base for on-job training and orientation programs.

iv) METHODS OF JOB EVALUATION:

Ranking Classification Point Method

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Factor Comparison Market Comparison

v) FACTORS IN JOB EVALUATION:

Job evaluators often assess jobs based on these factors:
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

Training level or qualifications requirements Knowledge and skills requirements Complexity of tasks Interaction with various levels of the organization Problem-solving and independent judgment Accountability and responsibility Decision-making authority Degree of supervision required Cross-training requirements Working conditions Degree of difficulty in filling job

vi) JOB EVALUATION METHODS IN ELABORATION:

A. RANKING
Ranking jobs is the easiest, fastest, and least expensive approach to job evaluation. It is also most effective in smaller organizations with few job classifications. To rank positions, order jobs from highest to lowest based on their relative value to your organization. The process of job ranking typically assigns more value to jobs that require managerial or technical competencies. More value is also assigned to jobs that supervise, exercise decisionmaking authority, or rely on independent judgment. For example, a job-ranking system might

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

Advantages:

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

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

Disadvantages

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

complexity are often assessed on the basis of opinion. Also, when creating a new job, existing jobs must be reranked to accommodate the new position.

B. CLASSIFICATION The general purpose of job classification is to create and maintain pay grades for comparable work across your organization. To conduct a job classification: First, write descriptions for a category of jobs; next, develop standards for each job category by describing the key characteristics of those jobs in the category; finally, match all jobs to the categories based on the similarity of tasks, the decision-making exercised, and the job's contribution to the organization's overall goals. Universities, government employers and agencies, and other large organizations with limited resources typically use job classification systems. These types of organizations have many types of jobs at diverse locations and must maintain equitable and fair standards across all work settings.

Advantage

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

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

Disadvantages

Job classification is subjective, so jobs mightfall into several

categories. Decisions rely on the judgment of the job evaluator. Job evaluators must evaluate jobs carefully because similar titles might describe different jobs from different work sites.

C. POINT EVALUATION Point evaluation is the most widely used job evaluation method. In a point evaluation system, you express the value of a particular job in monetary terms. You first identify compensable

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factors that a group of jobs possess. Based on these factors, you assign points that numerically represent the description and range of the job. Examples of compensable factors are skills required, level of decision-making authority, number of reporting staff members, and working conditions.

Advantage

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

the job evaluator assigns each job's total points before the compensable factors become part of the equation.

Disadvantages

Subjective decisions about compensable factors and the associated

points assigned might be dominate. The job evaluator must be aware of biases and ensure that they are not represented in points assigned to jobs that are traditionally held by minority and female employees.

D. FACTOR COMPARISON Job evaluators rank jobs that have similar responsibilities and tasks according to points assigned to compensable factors. The evaluators then analyze jobs in the external labor market to establish the market rate for such factors. Jobs across the organization are then compared to the benchmark jobs according to the market rate of each job's compensable factors to determine job salaries.

Advantage Disadvantage process.

This method results in customized job-ranking. Compensable factor comparison is a time-consuming and subjective

E. MARKET COMPARISON Job evaluators compare compensation for your organization's jobs to the market rate for similar jobs. This method requires accurate market-pricing surveys. It is to be mentioned that this is the most widely used method in todays time in Bangladesh.

CHAPTER-2 GRAMEENPHONE LTD.

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Grameenphone is now the leading telecommunications service provider in the country with more than 23 million subscribers as of December 2009.Presently, there are about 50 million telephone users in the country, of which, a little over one million are fixed-phone users and the rest mobile phone subscribers. Starting its operations on March 26, 1997, the Independence Day of Bangladesh, Grameenphone has come a long way. It is a joint venture enterprise between Telenor (55.8%), the largest telecommunications service provider in Norway with mobile phone operations in 12 other countries, and Grameen Telecom Corporation (34.2% ), a non-profit sister concern of the internationally acclaimed microcredit pioneer Grameen Bank. The other 10% shares belong to 10% to general retail and institutional investors. Over the years, Grameenphone has always been a pioneer in introducing new products and services in the local market. GP was the first company to introduce GSM technology in Bangladesh when it launched its services in March 1997.The technological know-how and managerial expertise of Telenor has been instrumental in setting up such an international standard mobile phone operation in Bangladesh. Being one of the pioneers in developing the GSM service in Europe, Telenor has also helped to transfer this knowledge to the local employees over the years.

CHAPTER-3 FINDINGS OF THE STUDY

i) GRAMEENPHONES GENERAL POLICY:

Compensation is what an employee receives in exchange for his/her physical and mental works, and contribution to the company. Compensation does not represent only salary but a wide range of benefits and service are part of the total compensation package. Grameenphone wishes to pay rewarding and competitive salaries to attract, retain and motivate competent and skilled employees at all levels of the Company. By rewarding and competitive salaries it means that each employee should be rewarded in accordance with:

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Job Analysis & Job Evaluation 1. 2. 3. What the post requires, How skilled the employee is and What the market pays for work of the same type.

August 3, 2010

Grameenphone wishes to design a compensation system that has strong positive impact on employees and ultimately on the Company's performance. Keeping Company's strategic objectives and unique characteristics and environment in mind, Grameenphone determines a number of criteria for designing a compensation system. The criteria are: i. Internal and external Equity: Internal equity means that there should have fairness of the pay structure within the Company i.e. similar jobs get similar pays. External equity assures that jobs are fairly compensated in comparison with similar jobs in the job market. To achieve internal equity, periodic job evaluation that assesses the relative worth of jobs throughout the Company should be conducted. On the other hand, to achieve external equity, periodic market survey and cost of living adjustment should be taken into account. ii. Competitiveness: There are obvious affect of market forces on compensation. Compensation must respond to the supply of and demand for employees in the market since employers compete for work force. iii. Cash and non cash benefits: Cash payment motivates employees through monetary rewards such as salary and allowances. The Company pays cash benefits according to ability to pay. Non cash benefits such as job security and making the job interesting is also taken into account. iv. v. Performance based pay: Employee productivity, skills and performance are also important determinants of the compensation system of the Company. Consistency: All-out efforts are made to ensure that compensation system is consistent with HR policies and it is uniform and stable. Grameenphone wants a salary system which rewards qualification, good practice and performance. During fixation of employee's salary, Grameenphone looks at the following criteria:

Company's affordability to proposed salary level

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Job Analysis & Job Evaluation Competitive pay in the market for similar job Growth of the Company Individual's economic welfare Fairness and equity

August 3, 2010

There are number of ways Grameenphone fixes employees salary. They are: 1) During appointment through salary negotiation. The salary for the new hires will be fixed based on the position level, the applicants qualification, skills, experiences and the budgetary provision, 2) Year end inflation adjustment with the basic salary, 3) Salary adjustment during confirmation, based on performance, 4) Due to revision of salary structure, an employees salary will be adjusted in such a way that the new salary shall not be less than his/her current salary. 5) For a promotion to higher Grade, employee will occupy the step of the upper grade in such a way that one receives an increased salary not less than his/her one step increment at the current grade. Hence, according to the information provided above we can come to a conclusion that Grameenphone uses market comparison method to evaluate job. Regardless of what workplace studies reveal, working is about compensation. Working can be about much more, too, but the bottom line for people is that their work must pay their bills. Employees desire reasonable, viable, and market-responsive salaries. Compensation is the visible demonstration that an employee's work is valued. Consequently, effective compensation is one of an employer's most important and powerful communication tools.

ii) JOB EVALUATION METHOD FOLLOWED IN GRAMEENPHONE:

Employees desire reasonable, viable, and market-responsive salaries. Compensation is the visible demonstration that an employee's work is valued. Consequently, effective compensation is one of an employer's most important and powerful communication tools. Grameenphone uses market comparison method. It studies salary surveys and other market data to determine pay ranges. Because a key factor in employee retention is satisfaction with pay, this figure should serve as a signal to employers that they need to conduct market pay

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Job Analysis & Job Evaluation

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studies and communicate the results to their employees. Market pay is the compensation paid for a specific job, including information about bonuses and benefits that is determined by a continual analysis of the competitive job market. Increasingly, with data so readily available, potential candidates and internal employees are negotiating their salaries armed with knowledge of market pay data. As an employer, Grameenphone is prepared to respond. Market pay data is a part of their organization's overall strategy to determine equitable compensation. Otherwise an organization might not remain competitive. Effective market pay studies also help Grameenphone in several studies:
1.

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

2. 3. 4. 5. 6. 7.

Attract talented employees. Negotiate fair compensation with candidates. Control compensation costs. Communicate the rationale for salary grades and ranges. Improve employee satisfaction through fair compensation practices. Improve interaction with and trust in management.

To accomplish these results, Grameenphone creates and maintains an effective market pay measurement system, and is knowledgeable about how to integrate salary surveys into its company's compensation philosophy and practices. Market pay studies are critical for establishing equitable and fair compensation within an organization. Attracting and retaining superior employees for ones jobs is critical to ones success as a business, particularly as demographic changes (such as population aging) create a more competitive job market because there are fewer candidates. Organization cannot afford to let the market pass it by. An effective market pay study is the answer which Grameenphone follows. Therefore, the value that is assign to jobs in organization's compensation system should be driven by the most up-to-date information about market pay. Practical market pay data can be obtained which includes information about salary, benefits, and bonuses, from a continual analysis of the competitive job market.

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Job Analysis & Job Evaluation

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Grameenphone incorporated strategic work valuation in structuring pay. Strategic work valuation emphasizes both the market pay rate for the job and the value of the job to the organization in which the valuation factors are specific to its organization. These valuation factors measure the impact of each job in its organization's success. By considering all these factors Grameenphone prepares its pay structure. In addition to using market comparison method of job evaluation it also has its internal classification of job.

iii) TOTAL COMPENSATION IN GRAMEENPHONE:

The features of Grameenphones Pay structure are stated below: 1. Grameenphone maintains a degree of fairness between the pay allocated to jobs having different level of skill, responsibility and experience. 2. Each step salary (other than step 1 salary) in any grade is calculated by adding a certain fixed amount with the previous step salary. The fixed amount may vary between grades. 3. Employees move upward in the steps will reflect the good performance, increased skills, work related knowledge and/or years of work with Grameenphone. 4. The salary structure will be reviewed after every three years in September. For a complete month, one month basic salary applies but for fractional period, pro-rata basic is calculated by dividing basic into 30 days as set standard. In a number of situations, Grameenphone deducts basic salary of the employee. They are: 1. Deduction due to absence without proper authorization 2. Deductions for damage to or loss of property/goods expressly entrusted to the employee for custody; or loss of money for which he/she is required to account, where such damage or loss of money is directly attributable to his/her neglect or default. 3. Deductions for adjustment of advances or overpayment, if any 4. Deduction of income tax payable by the employee and

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Job Analysis & Job Evaluation 5. Employee's provident fund.

August 3, 2010

For better convenience, the total compensation of Grameenphone is divided into three categories and they are as follows: 1) Basic pay 2) Fringe benefit 3) Incentives

iv) BASIC PAY:

Basic salary is an important part of employee's salary. It is paid monthly with other admissible allowances such as house rent, medical allowance, and transportation allowances in applicable cases. Grameenphone provides salaries to its regular and contract staff according to Grade and Salary Matrix of the Company. The Grade and Salary Matrix of Grameenphone is composed of 13 classified grades and under each grade there are 10 salary steps. The Pay Structure for Grameenphone employees represents the salary level of the company. Each grade has salary ranges and the fixation of basic salary during appointment, confirmation or annual appraisal completely depends on the discretion of management. The salary structure is kept strictly confidential and not shared with employees or outside except authorized officials.

v) FRINGE BENEFIT:
Fringe benefits are compensations made to an employee beyond the regular benefit of being paid for their work. It is not related to performance. Following are the fringe benefits provided by Grameenphone: PROVIDENT FUND The permanent employees of the Company are eligible to become members of the Provident Fund. Employee contributes 10% of their basic to the provident fund and the Company makes equal contribution to the fund. The Company's contribution starts once the employee has become permanent employee of the Company. A Provident Fund Trustee, with separate rules, is formed for managing the provident fund.

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Job Analysis & Job Evaluation

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The PF maturity period is three years. Employee has to serve minimum three years for being eligible for both employee and company contribution. GRATUITY Gratuity is paid to an employee for providing a life time service to the Company. The eligibility is minimum five- year service with the Company. Gratuity amounts are linked with the respective employee's length of service which are as follows: Gratuity @ 1 month's basic/for each year @ 1.5 month's basic/for each year @ 2 month's basic/for each year Years of Service 5 years 5 Years to 10 Years More than 10 years

Gratuity is equivalent to one (or more as the case may be) month's basic based on the last drawn basic salary for every completed year of service or for any part thereof in excess of six months. HOUSE RENT House rent is another component of pay structure. The amount of housing allowance is expected to allow employees to rent a reasonable but standard house. To the extent possible, a fair level of consistency between house rent and the respective employee's living standard is ensured. The company expects that employees rent a standard house. The housing allowance is calculated at a certain percentage of respective employee's basic salary. The percentage is equal irrespective of employee's place of posting. If an employee joins or leaves the Company on a day other than the beginning of a calendar month, then his/her housing for that month will be calculated fractionally by dividing house rent by 30 days as set standard. MEDICAL ALLOWANCE Medical allowance is paid to the employee at a fixed amount and the monthly payment is made according to their position entitlement. This medical allowance is in addition to hospitalization or on duty accident benefits, if any. EMPLOYEE TRANSPORTATION BENEFIT

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Job Analysis & Job Evaluation

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Grameenphone provides transport benefits to all employees as per the following guidelines & procedures. For administration purposes of this employee benefit, the Transport Section and the Transport Policy will be applicable. It is essential that all employees use the transport benefits as specified in this policy as per rules and guidelines described herein. For local travel outside office on official purpose, the employee will be reimbursed actual travel costs. In this regard, employees should claim reasonable transportation costs. For all employees in the Manager & below level, a lump-sum amount of Tk. 100 can be claimed as transportation allowance for each way travel to office in a weekly holiday or other holiday in case transport could not be provided even after request is made. Such request should be made by 30 minutes prior to end time of normal office hours of the last day of the week. It is essential that by no means divisional vehicle be used for employee pick & drop. The allowance for travel to office in a weekend or holiday will be claimed by using prescribed allowances format duly endorsed by immediate supervisor and approved by Department/Divisional Head. TRANSPORT BENEFIT FOR EMPLOYEES OF DM LEVEL AND BELOW If opted for, employees in DM and below level will get pick-up and drop services to and from convenient places near to their respective residence for arriving and departing from office. However, on exceptional cases, operational employees might be given pick up and drop to and from home and technical sites by on-call divisional vehicles as per the policy guidelines for such vehicles. Such pick up and drop services will be arranged by Grameenphone vehicle or hired vehicle. Route for pick & drop services shall be determined as per the actual need of the employees and in accordance to road condition by the Transport Section. Employees are discouraged to frequently change the route plan. Employees on board such vehicle are not authorized to change the pre-determined route or to influence drivers or fellow employees to do the same. Employees shall be given the option of choosing between Transport Allowance and Pick & Drop service by filling a prescribed format. In case of new employees, the declaration of his/her choice for availing the transport service or claiming allowance will be taken at joining. Based on option, new employees will be paid transportation allowance effective from the date as mentioned in the prescribed format. This will also be applicable for transferred/promoted employees.

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Job Analysis & Job Evaluation

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Once the option has been given, employees will not be able to change their choice within the next three months, unless employee has been transferred or has medical reasons supported by documentation from registered physician. Employees opting for Pick & Drop service shall be issued with a Transport Pass, which needs to be returned should the employee intend to switch the option after the specified three months or at the time of separation from employment. The option will be effective from the first day of a month. Therefore, the employee will communicate their choice of option at least 10 days before the beginning of the month. Transport Section will monitor the use of transport facility being used by the employee in a particular route. Partial Allowance and One-way pick & drop service is not allowable. Employees with transport pass who require working beyond normal office hours will be given staff drop by company pool vehicle at specified time on pre-determined routes. All late hour drops after dusk will be provided up to the nearest point of the employees home. Employees with transport pass who requires to work beyond normal office hours need to inform Transport Section in timely manner through their supervisor enabling transport section to organize necessary number of vehicles for such drop. Part-time and contractual employees will be allowed to use drop facilities as per the Transport Administration Guideline. CAR SCHEME OPTION FOR DGM LEVEL EMPLOYEES Under this scheme, company will finance to support all confirmed employees in the DGM level to have their own transport for personal convenience and safer mode of transport. Types of Car: Employees can purchase new or unregistered reconditioned cars as specified in Appendix-Car Scheme. Value Ceiling: The maximum car value will be as per specifications laid down in AppendixCar Scheme. Employees contribution: Individual employees availing the car scheme will have to bear 1/3 (one third) of the total cost of the car. Insurance and Registration Costs: The Insurance and registration costs of the car will be borne by the company. Inspection of Reconditioned cars: Reconditioned cars may be purchased within the value ceiling specified in Appendix-Car Scheme. Purchase of Reconditioned cars will be subject to inspection procedures and engine analysis as per company specifications in a reputed

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Job Analysis & Job Evaluation

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workshop designated by the Company. The Companys decision as to whether a reconditioned car meets the inspection standards will be final. Fuel and Maintenance Allowance: All fuel, maintenance, repair, servicing, and replacement of parts and/or similar costs will be provided as per Appendix-Car Scheme. Alternative: If an employee does not avail the scheme, he will be entitled to an allowance of Tk. 23,000/month instead of Tk. 11,500 to maintain his personal transport or have self arrangement. Applicable Conditions: To avail this scheme, an employee will have to sign a surety bond to serve the company for 5 (five) years. In case the company has made full payment of the company part for the purchase of the car, and the employee leaves the company before completion of 5 years, pro-rata deduction based on the company provided amount will be made from the employees final settlement amount and the individual will take the car. All costs relating to the transfer of ownership of the car shall be borne by the individual. After completion of the 5 years, the ownership of the vehicle will be transferred to the employee and he/she will be eligible to apply for the Car Scheme again. On Promotion: If the employee gets promoted to AGM during/before the expiry of the scheme; the company will pay the remaining balance of the total amount and take ownership of the vehicle. The employee will continue using the car with full support and at the end of the remaining period of the five years term he/she will own the car. LATE WORKING HOURS AND REPRESENTATION ALLOWANCE Manager (including DM) and above level of employees are permitted to claim entertainment allowance of Tk. 200 per day for working three or more hours of work in excess of their normal working hours. TRANSPORT BENEFIT FOR AGM AND ABOVE For employees in the AGM and above level, Grameenphone will provide company vehicles as per the following entitlement table, guidelines and regulations ` Engine Volume(CC) Designation New Recondition Vehicle Maintenance and other expense Maximum Fuel Allowance (litre) Max OT Allowance for Drivers Driver Allowance

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Job Analysis & Job Evaluation

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Actual as AGM 1300 1500 By GP 250 100 Hrs per Company Policy Actual as GM 1500 Up to 1800 By GP 250 100 Hrs per Company 2500 DD Nissan XTrail Director 3500 Not Applicable By GP Actual Actual Not Applicable By GP 300 100 Hrs Policy Actual as per Company Policy Actual as per Company Policy If the vehicle plies outside the respective city area for official purpose, the fuel consumed extra will be allotted based on that vehicles average fuel consumption rate. If the vehicle runs on CNG limit of CNG will be equivalent value of the fuel cost. Grameenphone will arrange the drivers for these vehicles with the consent of the concerned employee. No spare driver is possible to be provided for these drivers going on leave. On resignation of an employee entitled for personal vehicle, the particular assigned vehicle will be under the custody of Administration department. Management will decide as to the use of the vehicle thereafter. Car specified according to each designation can be rented by GP for employees use until the car is purchased and allotted to the particular employee. Car purchased/issued shall be replaced after five years. The car shall be retained by the user (for AGM & GM level) if it has been used by them for a period of five years. If the employee leaves the company before the time period, the used vehicle shall be sent back to Transport Pool for Transport Section to dispose of the vehicle as per the Asset Disposal Guideline of Grameenphone. If an AGM is promoted to GM, he/she will continue using the same car for five years from the date of first issue/purchase. If a GM/DD is promoted to a higher tier of the organization, he/she will continue using the car till authorized car as per his/her new hierarchy is provided

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Job Analysis & Job Evaluation

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to him/her. Upon receiving the authorized vehicle according to his/her new designation, the old car shall be retained by Transport Pool to be reissued/disposed off. TRANSPORT BENEFIT FOR MANAGERS AND DGMS Managers/DGM level employees are provided with door-to-door pick-up and drop services with Company vehicle. However, they too can claim for transport allowance instead of pickup & drop as per their entitlement. Employees in Manager/DGM level will get pick up & drop by the common pool vehicles designated for them. Should the road condition of the residence of Manager / DGM deters vehicles to provide door-to-door service, such service shall be rendered to the nearest point of the residence of the Manager/DGM. Divisional/Department transport cannot be used for pick up drop when common pick up drop service is available. However on exceptional cases in emergency operational requirement an employee in Manager/DGM level can be picked up from his/her residence to the site and dropped back to his residence by the departments vehicle. This practice cannot be made on a regular basis. Transport section, in accordance with the user shall determine the route for Managerial pick & drop. Managers/DGMs who fail to avail their regular drop service at the end of the work require taking common late-drop. For such arrangement, concerned Manager/DGM needs to inform Transport Section for their arrangement. If anyone wants to leave early due to personal reasons, s/he will not get the drop facility except emergency. OVERTIME Overtime is defined as hours worked beyond normal working hours that has prior approval from department / section head. Statement of principle: Company expects that employees shall have proper work plan. Disorganized or unplanned work habit that necessitates extra hours to work is discouraged. In case of emergency, employees may require working beyond normal working hours for a short duration as approved by department /section heads. Overtime Policy: Employees in officer level or below are eligible for claiming overtime allowances. Normally overtime is calculated at the double of basic salary on standard working hours (208 hours a month). The hourly overtime rate is calculated as under: Hourly rate = (Monthly basic X 2) /176 However, for working from 10 PM to 6 AM, 3 times basic salary will be applicable.

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Job Analysis & Job Evaluation

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Normally overtime will not exceed 30 hours in a month. In exceptional cases, second level supervisor of an employee can approve overtime beyond the limit of 30 hours. As a standard, overtime will be claimed by using a prescribed format wherein the date, time must be mentioned. The overtime claim must be endorsed by immediate supervisor and approved by Department/Divisional Head before submission. Overtime shall not apply in case of outstation travel or attending any training program. For contractual employees, a monthly overtime allowances will be applicable according to following slabs: Extra hours 10 - 19 hours 20 - 29 hours 30 - 39 hours 40 - 49 hours 50 - 59 hours 60 hours and above SHIFT ALLOWANCE Shift allowance is paid to managers and below level employees who work in a shift other than normal working hours of 8 AM to 5 PM. The shift allowance is paid by hourly rate. There are different rates for different established shift jobs. Respective department can define shift hours according to own convenience but payment will be made as per the following table: Shifts General Shift Evening Shift Night Shift Holiday Shift Duration 8 a.m.-5 p.m. 4 p.m.-12 a.m. 12 a.m.-8 a.m. Any time Rate per hour --30 45 40 Amount Tk. 1000 Tk. 2000 Tk. 3000 Tk. 4000 Tk. 5000 Tk. 6000

Shift allowance is also applicable for contract employees at the above rate. Shift allowance will not be more than Tk. 4500 in a month. In case someones shift duty falls in 2 defined

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shifts then pro rata allowances will apply. For example, for working in shifts from 2 PM to 11 PM, shift allowance will be calculated according to the following principle: 2 PM to 5 PM 5 PM to 11 PM : : No shift allowance 6 hours shift allowance @ 30 per hour

When shift time ends, and employee has to work further, he/she will be compensated for the additional hours served by either overtime (for officers and below) or extra hour allowance (for DM/DSE, Managers/SE or equivalent positions) as the case may be. But during the defined shift hours, no overtime or extra hour allowance will apply. Each employee is required to submit a monthly statement to Finance in prescribed allowances format. The statement must be endorsed by immediate supervisor and approved by the Department/Divisional Head. In case of roaster duty pre-approvals have to be made by the divisional heads mentioning actual hours with no major deviations. The statement is prepared within the end of the month and the deadline for submitting the statement to Finance is 15th of the following month. ON CALL ALLOWANCE On Call Allowance will be applicable for all regular or contract employees in manager grade and below who may remain standby (on call duty) for emergency services to be provided for the interest of the Company. This is Company's policy to compensate those employees for their extra hardship. The On Call Allowance rate is Tk.250 per day. Such allowance is approved in addition to overtime allowance paid to the employee. On Call Allowance cannot be more than 15 days in a month. At the end of each month, an On Call Allowance statement of each employee has to be submitted to Finance upon endorsement of immediate supervisor and approval of Department/Divisional Head. BONUS All employees are eligible for two bonuses in a calendar year which is an amount equivalent to their two months basic salary.

One bonus is paid during Eid-ul-Fitr at a flat rate to all employees irrespective of the religion. Another bonus is paid as per the following festival of different religious affiliation: Muslim : Eid-ul-Azha

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Job Analysis & Job Evaluation Hindu Buddhist Christian : : : Durga Puja Buddha Purnima Merry Christmas

August 3, 2010

Two month's basic as bonus is paid in full for a calendar year or a pro-rata amount for incomplete calendar year, whichever may be the case. The bonus will be paid according to the basic that is due on the festival day, not the basic on the payment day. An example: An employee who joins on April 1 and if there are two festival in that calendar year, then the employee will get fractional festival bonus according to the following formula: Bonus = (2 months basic x days with the Company) / 365 HR will prepare the bonus list prior to three weeks time of Eid-ul-Fitr and the respective festival day and Accounts, based on the list, will arrange to transfer bonus amount two weeks ahead to employee's account. An employee who joins after festival date will be paid bonus after the end of the year. If an employee leaves the Company on any day preceding to the festival bonus payment date for whatsoever reasons other than retirement, his/her festival bonus will not be paid. EDUCATIONAL GRANT An employee can avail Educational grant for pursuing higher studies in a discipline related to current responsibilities or in an area where he has future career aspirations. This will enable him/her to have personal development and better contribute to the business. Eligibility: Employees at any level having two year or more service length with Grameenphone will be eligible for the Educational grant. Details of the Grant: Grameenphone will bear up to 75% of the total course fee, not exceeding Tk. 350,000. The total number of grants will not exceed 40 per year. The grant will be disbursed as reimbursement of the course fee per period/semester. Course Criteria: Employees will be allowed to pursue higher studies beyond working hours that is related to his particular profession. Educational grant will not be applicable for any certificate course. The grant will apply for in-country courses. An employee will be allowed

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to receive the grant for only one course at a time. After the completion of the course, he/she may apply for another grant. However, first time applicants will be given preference. Conditions: To sustain eligibility for the Educational grant, an employee must maintain at least an average standard in each semester/period throughout his course. In case his CGPA/class falls below the above mentioned standard, he/she will not be reimbursed for that particular semester/period. An employee availing the Education Grant will sign an agreement to serve the company for 2 years from the date of completion of the course. The employee will submit a formal letter from the Educational Institute clearly mentioning the date of completion of the course. In case of separation from the company before the 2 years term, proportionate cost considering the 2 year period will be deducted from his final settlement amount. In case the employee discontinues the course, or is separated from the company during the course, full amount will be deducted from the final payment. CHILDREN EDUCATION ALLOWANCE Children education assistance is an allowance to share employees childrens educational expenses. All confirmed employees will be eligible to avail children educational benefit according to the following entitlement structure

Level Assistant - Officer DM - Manager DGM - AGM GM - Deputy Director

Entitlement (maximum per child per month) Tk 1000 Tk 2000 Tk 3000 Tk 4000

To avail the children education assistance, an employee must declare and record his/her childs information and submit an attested/certified copy of the birth certificate of the child to HR. The amount will be paid out with the monthly salary of the employee. An employee can avail this benefit for all of his/her school going children below 18 years of age. For both the

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Job Analysis & Job Evaluation

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parents working in Grameenphone, only one claim will be allowed. The children education benefit will be effective from March 2006. LONG SERVICE AWARD An employee on completion of 5 years as of March 26 each year will be acknowledged for his/her contribution to the company. The employee will receive a gift within an amount of Tk. 30,000 for completing 5 years at the Long Service Award giving Ceremony organized by HR. Those completing the 5 year tenure after March in any particular year will be entitled for the award in the subsequent year. HARD FURNISHING Hard Furnishing is an incentive given to employees to assist improvement in their lives by buying durable household goods such as A/C, Freezer, TV, Home Theater Systems, Stereo Systems, Washing Machine, Kitchen Appliances, and Furniture etc. All confirmed employees in Manager and above level will be eligible to avail Hard Furnishing according to the following entitlement structure

Level

Entitlement

Manager

Tk 200,000/-

DGM

Tk 250,000/-

AGM

Tk 300,000/-

GM

Tk 350,000/-

Deputy Director

Tk 400,000/-

Payout of Hard Furnishing will be made on a reimbursement basis upon submission of the payment vouchers of the goods purchased by the employee. An employee will be eligible to

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avail Hard Furnishing once in every 3 years. Payout of the amount desired by the employee availing the benefit will be done by one go. If an employee avails an amount lower than his maximum entitlement, he/she will not be able to avail his/her remaining balance. Once availed, the employee has to serve the company for 3 years from the date of disbursement of the amount. This 3 years period will be effective for any employee even if he/she avails lower than his maximum entitlement amount. If he/she is separated from the company before completing the 3 years period, pro-rata deduction on the basis of his/her amount availed will be made from his/her final settlement amount. EMPLOYEE MOBILE PHONE Grameenphone provides mobile phone to all employees that facilitates our work and establishes communication between employees and family. In regard to the use of mobile phone, there are a number of guidelines that every employee has to follow strictly. Type of set: Employees will get company decided handset along with connection as part of their package. In case different handset is required for technical use or special features are to be incorporated in handset, it will be against divisional budget and respective Directors will approve of such handsets. 1. For regular employee: Company approved handsets will be provided to all regular employees for a 2 year term. After 2 years new handsets will be issued. 2. For Contract employees: The handsets will be given to those contractual employees (based on requirement) whose agreement is for at least 1 year and the cost would be deducted from respective divisional budget. However, in case of business requirements, lesser duration may be considered. For resignation cases, same policy applies as of regular employee. 3. For Consultant (local & foreign): The respective department/division will provide handset to consultants, based on requirement, from divisional budget. If any consultant wishes a handset for their family members they would buy the handset in their own. 4. For driver & support staff: The handsets would be issued by the third party through agreement. GP will pay bill up to certain limit.

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5. For BR employee: Respective division will handle new issue, loss and theft cases of BR employees according to their divisional budget/policies. Employees should be more responsible for the safeguarding of handsets provided by the company. Tariff Rate: Employee Mobile Phone Tariff Rate under GP Account will be as under (except BR employee): 1 second pulse, GP employee to GP employee: FREE, GP employee to any other GP number: Tk. 2/min (both peak & off peak), GP employee to other operators: Existing rate applies.

Mobile usage limit: Company will bear phone bill up to certain limit for different level of employees. The limits are:

Level Director DD/GM//AGM/DGM/Manager or equivalent positions DM/Officer/Assistant or equivalent positions Support staff, Drivers

Limit Tk.10,000 Tk. 5,000

Tk. 3,000 Tk. 1,500

Respective Division will decide mobile usages limit for contract employees/ consultants in line with the above usages limit policy. ACCIDENT BENEFIT In the event, an employee regular or contract, meets an accident while in working hours, in the workplace, and during carrying out work, the employee will be reimbursed 100% of all

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legitimate expenses in respect to such accident. On duty means that the employee has been in the course of discharging official assignment which is attributable to the pursuit of work objectives. If an accident occurs at a time when the employee travels from residence to office but has not yet reached duty station or on his/her way to residence from the office, accident benefits will not apply. The reimbursement in respect to accident benefits is contingent upon submission of the following: A requesting memo from the concerned department stating the nature of injury (internal or external) resulting from accident on duty. Doctors prescription and all supporting vouchers in original form Discharge certificate from the hospital/clinic, if admitted. The expenses include: 1. Doctors consultation fee in respect to accident 2. All medicine costs supported by Doctors prescriptions 3. All pathological tests fees in respect to accident 4. Hospital rents during hospitalization, if any 5. Operation charges, if any 6. Any other expenses relating to accident The concerned Departmental Head will recommend such expenses and will forward medical bill to HR for approval. ACCIDENTAL DISABLEMENT When an employee becomes disable resulting from accident Grameenphone, depending on the nature of disability, will make every endeavor to provide alternative suitable employment for the employee. In such case, Grameenphone will extend possible support to the employee in the form of monetary assistance. This payment depends on the duration of the disability and the benefit provisions are covered under insurance policy of Grameenphone. DEATH BENEFIT

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If a confirmed employee dies under normal circumstances, the Company will pay twenty four months gross salary to the legal heirs of the deceased. If an employee dies by accident while on duty, the legal heirs will be paid 24 months gross salary by Insurance Company. Death benefits will not apply if death is caused by suicide, during taking part in political activities or by criminal prosecution.

vi) INCENTIVES:
Grameenphone adjusts employee's salary in a number of situations. This is one type of benefit being offered to the deserving employees with a view to recognizing their best services rendered to the Company and thus keep their morale high. Regarding approval of Increment, Company's discretion is vital. Obviously, the basis is performance and any other relevant factors that the company deems fit to be given due consideration. PERFORMANCE INCREMENT An employee will receive salary increment in case he/she demonstrates excellent performance throughout the performance year and is recommended for increment by immediate supervisor according to Performance Appraisal Process of the Company. INCREMENT DURING CONFIRMATION At the time of confirmation, salary increment may be approved by HR Director based on the recommendation of Director/ Divisional Head. The concerned Head/Director proposes for increment with proper justification and HR Director, upon review of the justification, finally approves increment during confirmation. This type of increment may be considered for excellent performance during probationary period. EXTRA HOUR ALLOWANCE Extra Hour Allowance will be applicable for the following managers in case they work extra 30 hours or more in a month: DM/DSE or equivalent positions: Tk. 6000 Manager/SE or equivalent positions: Tk. 8000 The Extra Hour Allowance will be claimed upon submitting prescribed allowances form duly endorsed by immediate supervisor and approved by Department/Divisional.

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August 3, 2010

CHAPTER-4 CONCLUSIONS & RECOMMENDATION

Job evaluation is a powerful tool in the compensation and benefits specialist's repertoire. Effective job evaluation helps to gather information to develop job descriptions that meet the changing needs of an organization. By implementing a successful job evaluation, an organization can develop an equitable compensation plan and attract and retain highperforming and talented employees. Compensation is what an employee receives in exchange for his/her physical and mental works, and contribution to the company. Compensation does not represent only salary but a wide range of benefits and service are part of the total compensation package. Grameenphone wishes to pay rewarding and competitive salaries to attract, retain and motivate competent and skilled employees at all levels of the Company. By rewarding and competitive salaries we mean that each employee should be rewarded in accordance with: What the post requires, How skilled the employee is and What the market pays for work of the same type.

Grameenphone believes that regardless of what workplace studies reveal, working is about compensation. Working can be about much more, too, but the bottom line for people is that their work must pay their bills. Employees desire reasonable, viable, and market-responsive salaries. Compensation is the visible demonstration that an employee's work is valued. Consequently, effective compensation is one of an employer's most important and powerful communication tools that Grameenphone demonstrates very well by paying the most competitive and highest remuneration to the employees as compared to the other telecom operators. However, the only recommendation for Grameenphone is to reduce the call rate as it also disturbs the employees.

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