Letter of Transmittal

May 12, 2014

Mrs Sutapa Bhattacharjee
Assistant Professor
Institute of Business Administration
University of Dhaka

Dear Madam,
We, the students of Group 1 of Section – B, BBA 22nd Batch, have prepared this report on “Analysis of Grameen Phone’s Organizational Structure” which you had assigned to us as a part of the completion of the course “ Principles of Management”, Course Code: W201. We have studied on the organizational structure of Grameenphone based on what we have understood through the theoretical concepts mentioned in our books and also face-to-face interview of Mr. Monwar Hossain, Senior Specialist, Centre of Expertise, People and Organization, Grameenphone.
This was one of our most important experiences as we have learnt and mastered concepts that we have never dreamt of. Hopefully these experiences and concepts will help us in the corporate world awaiting us. We thank you for your moral support and help in this regard.
Please note that this report has been prepared under your supervision. Under no circumstances will this report be produced for any other BBA (IBA) course ever. No part of this report will be shared or republished without your authorization.

Sincerely yours,
Mithi Chowdhury (RH – 60)
Tahmid Md. Iqbal (ZR – 64)
Md Omer Faruk Chy (ZR – 73)
Tanjila Najnin (RH – 85)
Masroor Faiyaz Moqsum (ZR – 90)

Table of Contents:

1. Executive Summary....................................................................Page 1 2. Introduction: Introducing GP...........................................................................Page 2 Objectives of GP.........................................................................Page 2 3. Organizational Structure...........................................................Page 3 4. Span Of Control..........................................................................Page 4 5. Departmentalization and Chain of Command.........................Page 4 6. Relationship Among Employees and Formalization................Page 5 7. HR Management in GP: Recruitment Process..................................................................Page 5 Training Programs....................................................................Page 6 Performance Appraisal.............................................................Page 6 8. Facilities Provided to Employees.............................................Page 7 9. Reference...................................................................................Page 8

SELECTED ORGANIZATION: GRAMEEN PHONE

Executive Summary:

In today’s fast paced business environment with high economic inequality, financial institutions operating commercially must not aim to deliver the most competitive products and services only but also need to understand the importance of organizational structure and design so as to effectively manage resources and achieve the goals of the organization.
Starting its operation on March 26, 1997 the Independence Day of Bangladesh, it has come a long way. Grameen Phone pioneered the then breakthrough initiative of mobile to mobile telephony and till now it has been a pioneer in introducing new products and services. Presently, nearly ninety nine percent of the country’s population is within the coverage area of the Grameen Phone network.
The way the highly efficient management teams of Grameen Phone arrange and structure work to accomplish the organization’s goal has made it possible to create a brand value and walk along the path of success. Managers of Grameen Phone yet never cease to believe in the continued improvement of their management process. As a consequence Grameen Phone operates at the highest levels of integrity and accountability on a global standard.
INTRODUCTION:

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. Introducing Grameen Phone:

17 years ago, Grameen phone embarked on a journey with the ambition to connect the
Unconnected by making mobile communication as part of everyday life for all Bangladeshis and now it is the largest telecommunication service provider in Bangladesh.
It is a joint venture enterprise between Telenor and Grameen Telecom Corporation. It started its operations on March 26, 1997. It currently provides more than 50 products, services and features including prepaid mobile phone services, internet services, mobile handsets and other various services. Grameen Phone invariably tries to provide affordable services to the entire population of Bangladesh.

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. Objectives of Grameen Phone:

Profit alone is not the only objective of Grameen phone. The objective of GP is to provide the power of digital communication and help the customers get full benefit of being connected.
Vision- Empower Societies
Grameen Phone aims to provide the power of digital communication and therefore, enable and empower people to upgrade their lives, build societies and secure a better future for all. The essence of Grameen Phone rests on its goal to improve the lives of the 47.1 million subscribers who are now empowered under a single network.
Mission- To help customers
The sole purpose of Grameen Phone’s existence is to help customers get the full benefit of being connected. They measure their success by the degree to which they contribute towards human development. Raising the standard of communication among their customers is their primary target.
Values-
1. Make It Easy – Everything that has been produced MUST be user-friendly. The only objective in Grameen Phone is to make the lives of customers easier. 2. Keep Promises –Grameen Phone aims to achieve perfection in their services. However, when things go awry, GP is quick to engage in damage-control. They are about delivery, not empty promises. 3. Be Inspiring – Creativity is the essence of Grameen Phone. They aim to bring energy, imagination and innovation to their work. They rest on a world of creativity that, compatible with originality and artistry, contributes towards human development. 4. Be Respectful – GP acknowledges and salutes local cultures. They actively engage in social responsibilities wherever they operate. They want to help customers with their specific needs in a way that suits their life best.
In light of the diverse and variegated aims and purposes of Grameen Phone, it is evident that they have an intricate organizational structure that gives utmost importance to resource management, catering to the needs of employees and customers alike and to the achievement of set targets.
Why We Chose Grameen Phone-

Among several other brands and organizations, GP has managed to prove itself through its code of professionalism, ethics, quality of products and services and reliability. Through its comprehensive recruitment process, GP employs the most efficient managers of the country who enable GP to provide top-quality services to its customers and retain the highest level of customer satisfaction. They are the brains of this intricate organization and relentlessly work to lead the organization to its success. Therefore, we have decided to analyze and evaluate the organizational structure and procedure of GP to better understand how this organization runs.
SELECTED TOPIC:
ORGANIZING: One of the Four Management Functions

We intend to critically evaluate the organizing function of our selected organization, Grameen phone. We will observe how GP implements the theoretical concepts of organizing in a practical manner. We aim to obtain some details on how the basic concepts like Organizational structure, Departmentalization, Chain of Command, Span of Control, Formalization, Relationship among the Employees and Human Resource Management are implemented to arrange and structure the work and therefore, accomplish the organization’s purpose.
ORGANIZATIONAL STRUCTURE:

Grameen Phone completely realizes the necessity of creating a lean, flexible and innovative organizational design in order to carry out its operations properly in today’s increasingly dynamic and complex environment. Therefore, looking at its organization structure a combination of two contemporary organizational designs can be found. They are- 1. Team Structure 2. Learning Structure
Team Structure- A structure in which the entire organization is made up of work groups or teams.
Learning Structure- A structure in which employees continually acquire and share new knowledge and apply that knowledge.
GP ensures a friendly environment in which helping attitude of every employee makes it possible to work as a team. The work teams are empowered and supported tremendously. Across different functional specialties and at different organizational levels employees share information and collaborate on work activities. Thus GP provides a learning ground where employees have the opportunity to continuously learn from each other and do the organization’s work in the best way they can by applying their learning.
SPAN OF CONTROL:

The span of control in GP is not wide. Not more than seven employees in average are managed by a manager. Only in the Customer Service Department there is an exception of about 130 employees being managed by a manager. Otherwise in all other departments the span does not exceed the number of seven. Such a short span of control does not let employee performances worsen and helps them work up to the organizations expectations. In fact, the span of control is specifically designed to improve employee performance. It also gets easier for the managers of GP to manage the employees and run the organization effectively. This strategy enables them to effectively coordinate the efforts of 4000 employees.

DEPARTMENTALIZATION AND CHAIN OF COMMAND:

GP has many departments including the Finance Division, Marketing Division, Customer Service Division, HR, Regional Sales and Technology Department. Employees of the different departments are diversely skillful.In the daily operations of GP, there is a massive implementation of cross-functional teams, which are, essentially, work teams composed of individuals who specialize in various sectors. Their primary objective is to identify problems, formulate strategies to solve those problems, innovate and brainstorm. Therefore, a cohesive and cooperative group dynamic is essential to the fulfillment of said goals. Although top managers make organization-wide decisions, inputs from employees are also taken into consideration. Therefore, the employer-employee relationships in GP are mutually cooperative and not so formal.

RELATIONSHIP AMONG THE EMPLOYEES AND FORMALIZATION:

GP gives high importance to the establishment of strong relationships among the employees and teams. The organization culture of GP enables the employees to easily communicate and co-operate with one another. As GP has empowered employees and teams, there is little need for ‘bosses’ to direct and control. Instead managers serve as facilitators, supporters and advocates.
Formalization refers to how standardized an organization’s jobs are and the extent to which the employee behavior is guided by rules and procedures. All the employees of GP must comply with its fortified code of conduct and it is ensured that the employees maintain the workplace ethics formulated by GP. At the same time, GP allows its employees to make decisions that they feel best under the circumstances.

HR MANAGEMENT IN GRAMEEN PHONE:

RECRUITMENT PROCESS:

Human Resource determines the standard of an organization and ensures that the organization has a high-quality workforce. A qualified and skilled workforce can ensure the nature of products, services and organizational performance. The quality of this workforce is largely dependent on the recruitment process. Only an extensive and just recruitment process can ensure the inclusion of the best talents to the organization. GP conducts a critical and unique multi-level recruitment process which is called ‘Talent sourcing’ to select competent employees. GP tries to passively scan the candidates through various steps like initial screening, aptitude tests, and competency based interviews. Thus GP examines the candidates’ behavioral and psychological aspests and analyzes their effectiveness and skills to determine and obtain employees of the greatest expertise.

TRAINING PROGRAMMES:

To provide the employees with necessary knowledge and skills training programmes are quite important for an organization. GP implements numerous trainning programmes are implemented to enhance the employees’ job specific knowledge and different skills like interpersonal skill, communication skill etc. The training programmes focuses basically on the concept of the three Es’: Experience- The training program focuses mainly on building up the experience levels of the newly recruited employees. This is done by engaging the employees into the process of gradually and continually learning through working. Experience counts for approximately 70% of employee training. Exposure- This procedure needs employees to observe the management teams, other business units and work with various business functions as well as work into cross-functional teams. This sector accounts for about 20% of employee training. Education- GP focuses more on the contextual development of employees which essentially focuses on the amelioration of practical knowledge as opposed to solely focusing on the theoretical aspects by providing the employees with a great deal of reading materials and arranging workshops. This sector makes up about 10% of employee training.

PERFORMANCE APPRAISAL:

Employees are evaluated critically on the basis of their performance. Supervisors prepare a detailed report which focuses on said employee’s strengths as well as weaknesses, therefore, providing him/her with the opportunity for improvement. There is also feedback from both employee and manager and separate templates discussing the employees’ potential and core strength areas. This comprehensive system of evaluation enables employees assess themselves and better their work performance.

FACILITIES PROVIDED TO THE EMPLOYEES:

GP provides numerous facilities to their employees to ensure that work productivity is at its highest. During times of political turmoil, employees have the freedom to telecommute, although this is not an integral part of GP’s organizational culture. It is still very far from the norm. However, if the situation arises, employees have the opportunity to take advantage of this facility. Numerous transport services for employees exist, including microbus services. There are extra prayer rooms, gyms for women etc. In particular, GP aims to facilitate women employees in their organization. The organization has a comprehensive maternity policy which provides expectant mothers a 6-month leave. Performance evaluation is suspended during that time and work pressure is minimized. Women are accommodated for to the best extent possible. Besides a management team, GP gives its employees the freedom to form “People Councils” which are essentially teams formed by employees. The members elect a team of representatives who cooperate with the management teams to try and fulfill the needs of employees.

Reference: Mr. Monwar Hossain, Senior Specialist, Centre of Expertise, People and Organization, Grameen Phone

QUESTIONNAIRE:

ORGANIZATIONAL STRUCTURE
1. How is it decided that what structural design works best with GP’s organizational strategies?
2. Does GP have any of the traditional structural design- Functional or Divisional structure or any of the contemporary structural designs- Team, Matrix and Project, boundary less or Learning structure?
3. Is GP mechanistic or organic as an organization?
4. Does GP empower its employees? How do the managers establish the environment for the employees to learn and work?
5. Does GP implement cross-functional teams into its operations? In that case how are the teams formed and what are the criteria based on which the employees are selected?
DEPARTMENTALIZATION
1. How many departments does GP have?
2. What kind of departmentalization does GP have?
3. How is work specialized in GP’s departments?
4. Does every department have a flexible work arrangement like Telecommuting, Compressed Workweeks or Flexible Work Hours?
5. What are the most important functions and roles of a senior specialist and what are the extra responsibilities that he holds in comparison to others?
CHAIN OF COMMAND 1. How does GP allocate the authority and responsibility to establish the Chain of Command in the organization? 2. UNITY OF DIRECTION
1. How is a single plan of action decided upon to ensure that all the different departments pursue the aim of the organization?
SPAN OF CONTROL
1. What are the factors that influence the number of employees that a manager can effectively and efficiently manage?
CENTRALIZATION AND DECENTRALIZATION
1. Is GP a Centralized or Decentralized organization?
2. Do lower level managers provide any input or have any influence in the decisions-making process?
3. What are the steps managers take to bring GP to its maximum potential?
FORMALIZATION
1. What are the rules and procedures GP follows to guide and regulate the employee behavior?
2. Do the employees have the liberty to make decisions that they feel are best under the circumstance?
RELATIONSHIP AMONG THE EMPLOYEES
1. What are the steps that are preferred to take to enhance the relationship among the employees and departments?
HUMAN RESOURCE MANAGEMENT
1. What type of selection tools are preferred to choose the employees?
2. What are the steps taken to provide the employees with needed skills and knowledge?
3. What is involved in the human resource management training of GP?
4. What method is used to evaluate the employees’ performance?
5. What are the criteria that are emphasized on to identify competent employees?
6. What are the contemporary issues in managing human resources and how are they tackled?
7. How does GP hope to maximize the effectiveness of its employees in the future?
8. How is HR important to the daily operations of GP?
9. Does GP have work councils or board representatives?
10. How do you locate, identify and recruit employees?
11. How do you train employees? Are employee training program implemented?
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Analysis of Grameen Phone’s Organizational Structure

PRINCIPLES OF MANAGEMENT

Course Code: W201

Group Members:
Mithi Chowdhury (RH – 60)
Tahmid Md. Iqbal (ZR – 64)
Md Omer Faruk Chy (ZR – 73)
Tanjila Najnin (RH – 85)
Masroor Faiyaz Moqsum (ZR – 90)

Batch-22
Section-B
Group-1

Supervised By:
Mrs Sutapa Bhattacharjee
Assistant Professor
Institute of Business Administration
University of Dhaka

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