Chapter 1:

Introduction

1.1 Introduction to the Topic:

MBA academic program is the building up of the theoretical knowledge about business
administration which is the base of practical knowledge. MBA internship program is an attempt
to provide business students an orientation to a real life business situation in which we can
observe and evaluate the use and applicability of the theoretical concepts which were taught in
the classrooms. As per norm this report is the requirement of the fulfillment of the internship
program. This report is the outcome of my works in Banglalink

1.2 Main Subject of Topic:

Main subject of topic of this report is “Human Resource Practices in Bangladesh: A Study of
Banglalink Digital Communications Ltd.”.

1.3 Objectives of the study:

Primary Objectives:

1. To discuss about telecommunication business in Bangladesh.

2. To present a background and introduction of Banglalink
3. To focus on the business and operations of the company.
4. To discuss about Human resource Planning (HRP).
5. To discuss about Recruitment and Recruitment Policies.
6. To discuss about selection.
7. To discuss about Training and Development.
8. To discuss about Transfer, Termination and Other Disciplinary Action.
9. To discuss about Benefits, Leave and Other Allowances.
10. Analysis of Financial Statement of the Organization.

1
 Secondary Objectives:

1. To have Knowledge on Banglalink and Mobile industry.

2. To improve corresponding and report writing ability.
3. To fulfill requirement of the internship program.

1.4 Scope of the Study:

The scope of the study is limited within telecommunication business in Bangladesh. It is also limited
within the organization of Banglalink and for that reason that information was very much restrictive
within the organization as the telecommunication business is going to be very much competitive. Here I
discuss with the topics related to the profile of the organization, Human Resources activities and
Financial Statement of Banglalink

1.5 Limitations:

The company does not have sufficient source of secondary data and collecting of data was not
smooth.

• It was really difficult for me to accumulate confidential financial data.

• Analyzing financial data is much more confusing and complicated than any other data.

2
 Chapter-2
Literature Review

The telecommunication has been part of a larger class of industries, public utilities, with
similar technological, economic and public service characteristics by tradition. According to
Melody (2001) public utilities is derived from the law in any country. Where the demand for
a good or service is considered a common necessity for the public at large and the supply
conditions are such that the public may not be provided with reasonable service at
reasonable prices. This is a condition that a government takes state initiative to make
smooth supply and delivery of utilities under the public overhead expenditure schemes just
to provide an example of government’s sympathy toward common citizen.

Service and Services Quality Service and Services Quality ;

In order to achieving higher levels of quality service in service companies should deliver higher
levels of service quality and in the present context customers’ perceptions are highest (Hossain
and Leo 2009). According to Aguset. al (2007) there are two perspectives to the ongoing pursuit
of service quality. From the perspective of the service organization, there is a desire to survive
and compete in a global environment. From the perspective of the customer, there is a desire for
better quality services. In fact the private sector’s singular focus is on economic efficiency, as it
is generally viewed that profit and/or cost reduction are key ingredients to survival and growth
(Cooper, 2004). Agus et al. (2007) also find out that a strong correlation between service quality
dimensions, service performance and customer satisfaction. They also mentioned that service
providers classified as “excellent” were rated most implemented by any existing or potential
competitors (Barney, 1991). Moreover, according to them, a competitive advantage also
sustained when other companies are unable to duplicate the benefits of this strategy. Service is a
form of attitude which is related to satisfaction and also leads to consumer loyalty (Johnson and
Sirikit, 2002) and future purchase. In particular consumers prefer service quality when the price
and other cost elements are held constant (Boyer and Hult, 2005). It has become a distinct and
important aspect of the product and service offering (Wal et al., 2002). According to Leisen and
Vance (2001) service quality helps to create the necessary competitive advantage by being an
effective differentiating factor. Service quality was initiated in the 1980s as the worldwide trend

3
when marketers realized that only a quality product could not be guaranteed to maintain
competitive advantage (Wal et al., 2002). Service quality is essential and important for a
telecommunication service provider company to ensure the quality service for establishing and
maintaining loyal and profitable customer (Zeithaml, 2000; Leisen and Vance, 2001).
Conversely, Johnson and Sirikit (2002) state as service delivery systems have the ability to allow
managers of company to identify the real customer feedback and satisfaction on
theirtelecommunication service. Since, quality reflects the customers’ expectations about a
product or service. Lovelock (1996) stated that this customer driven quality replaced the
traditional marketing philosophies which was based on products and process. perishable,
produced and consumed simultaneously and heterogeneously (Zeithaml and Bitner, 2000). So, it
sounds a major problem for the telecommunication service providers, especially for the mobile
telecommunication service providers to deliver quality service consistently as changes in market
compositions and competing characteristics have been surfacing incessantly. According to Wang
and Lo (2002), marketing and economics quality often depends on the level of product attributes.

They also state that there are two primary dimensions for quality in operations management. At
first, fitness of use, which refers to product or services that is supposed to do and possess
features to meet the customer needs. The other one is reliability, which represents the product
that is free from deficiencies. Accordingly, it is important for a company to understand how
customers perceive their service quality. Consequently, Rust and Oliver (1994) pointed out that
companies need to measure consumers’ satisfaction with their products and services. Generally,
service and product quality always lies in the minds of the consumers depending on individual
buying capacity, buying behavior, demand, taste, and fashion criteria and obviously the
competitive markets that provide significant differentiation strategies. Therefore, it seems a
downright necessity for the mobile telecommunication service provider to communicate directly
with the potential consumers for measuring possible quality or service meets or exceeds
consumers’ expectations. Wang and Lo (2002) studied on comprehensive integrated framework
for service quality, customer value, and customer satisfaction and behavioral intentions of
customers in China’s mobile phone sector. They conceptualized factors with service quality as
antecedents to customers’ overall evaluation of service quality rather than dimensions or

4
components of the construct. Herein, they found that the competition between two mobile phone
service providers is more intense than ever. This competition is not only in ensuring network
quality by a large amount of investment in network extension and upgrading but also in customer
acquisition and retention by direct and indirect price reduction efforts

Service quality has a significant influence on consumer perception in selecting mobile

telecommunication service provider. mobile telecommunication service provide Yin and Paswan
(2007) indicate that price volatility is negatively associated with internal reference price.
Consumers’ price comparison propensity and priceknowledge positively influence external
reference price. They also mentioned that price volatility has a significant negative influence on
consumer knowledge. Price is significant indicator of quality across services categories. It is
been find that both significant indicator of quality across services categories. It is been find that
both significant indicator of quality across services categories. It is been find that both quality
cue utilization for financial services (Estelami , 2008). Draganska and Jain,(2003) states that a
common strategy for a company extending their product or service is to differentiate their
offerings vertically. In this era of information age, price competition has become cutthroat in
mobile telecommunication industry. Trebing (2001) mentioned that there are three sets of
strategies for pricing behavior. The first is limit entry pricing, which is used for protection of the
market position of the firm;second is the high access charges for new entrants, and the third one
is tie-in sales to write off old plant or standard investment against captive customers. According
to the author, limit entry pricing involves setting low prices in highly elastic markets to attract or
retain large customers with monopolistic buying power, while maintaining high prices in
inelastic markets. Price plays a vital role in telecommunication market especially for the mobile
telecommunication service providers (Kollmann, 2000). It includes not only the buying price but
also the call and rental charges. Generally, a price-dominated mass market leads to customers
having more choices and opportunities to compare the pricing structures of diverse service
providers. A company that offers lower charges would be able to attract more customers
committing themselves to the telephone networks, and hence, significant number of “call
minutes” might be achieved. According to Kollmann (2000), income from the number of call
minutes determine the basic commercial success for the network providers. He also added that

5
the success of the telecommunication sector in a market place largely depends on continuing
usage and pricing policies, which need to be considered on several levels.

Availability Product Quality and Availability

According to Sjolander (1992) the consumer behavior in modern market is different from the
theoretical case of consumer decision making in free markets. Generally, free and competitive
markets are composed of buyers and sellers each of whom must possess perfect information
about all possible products and their respective utilities; a well defined and explicit set of
performances; the ability to determine optimal combination of various products given their
budget constraints; a knowledge of prices, which does not affect the subjective wants or
satisfaction of the consumer. (Monroe and Petroshius, 1973 adapted by Sjolander, 1992).
Consumer’s perception of product quality is always an important aspect of a purchasing decision
and market behavior. Consumers regularly face the task of estimating product quality under
conditions of imperfect knowledge about the underlying attributes of the various product offers
with the aid of personal, self-perceived quality criteria (Bedeian, 1971 adapted by Sjolander,
1992). Notwithstanding the facts, it is necessary to define quality in the first place before it can
be measured. Although, there is no globaldefinition of quality exists (Sebastianelli and Tamimi,
2002), it can be defined in a varieties of ways. Yoon and Kijewski (1997) pointed out that quality
can be categorized into two perspectives. One is the marketer’s perspective, which is
typicallyproduct-based or manufacturing-based and the other one is consumer’s perspective,
which is typically user-based or value-based. Generally, product quality from the marketer’s
perspective is associated with specific feature, function or performance ofa product. On the other
hand, product quality from the consumer’s perspective is associated with the capacity of a
product to satisfy consumer needs (Archibald et al., 1983). According to Lambert (1980),
consumers often attribute quality to branded products on the basis of price, brand reputation,
store image, market share, product features and country of manufacture. So, price is an indicator
to measure the product quality, which is based on the theory that quality is a measure of the
utility, or the want-satisfying capacity of products (Sjolander, 1992). The author has also added
that the more the quality a product possesses, the more the utility it contains, and the higher the
price it will obtain in an open market exchange. This means that similar products offered to the

6
market at different prices, contain different amounts of utility, and that there is a direct
relationship between quality and price. The actual price- quality relationship is a complex
interaction between price, brand name, store image, product features, and brand awareness
(Lambert, 1980; Gerstner, 1985). Overall, the quality of a product is also related to the
availability of the product’s main functional features on one hand and the consumer’s
experience-in-use of the other auxiliary features on the other hand (Yoon and Kijewski, 1997). A
product’s main functional features are the sources of the primary benefits that the consumers
expect to obtain when purchasing a product. In general, consumers’ evaluations of a product’s
overall quality are related to the availability of these features in comparison with the competition
(Lambert, 1980; Nowlis and Simonson, 1996). Hence, it is necessary for the telecommunication
service providers to effectively communicate

with the consumers for measuring the quality. Quality reflects the extent to which a product or
service meets or exceeds consumers’ expectations (Wal et al. 2002). Therefore, the success of
the telecommunication sector in the market place significantly depends on product quality and
availability.

HRM

Meanwhile promotion is a tool that can help an organization in the achievement of its objectives
(Alvarez and Casielles; 2005). Promotion is when companies inform, persuade, or remind
customers and the general public of its products (Kotler and Armstrong, 2003). Promotions
impact consumers’ purchasing behavior and decisions towards that particular brand, especially
during the sales promotion period (Freo, 2005). More specifically, the objectives of any
promotional strategy are: increase sales; maintain or improve market share; create or improve
brand recognition; create a favorable climate for future sales; inform and educate the market;
create a competitive advantage, relative to competitor’s products or market position; improve
promotional efficiency. (Rowley, 1998). Promotion is one of the medium which is used by
organization to communicate with consumers with respect to their product offerings (Rowley,
1998). It is an important part for all companies, especially when penetrating new markets and
making more or new customers (Kotler et al., 1999). The authors also state that promotion is the
activities that communicate about the products or services and its potential merits to the target
customers and eventually persuade them to buy. Generally, promotion is concerned with

7
ensuring that consumers are aware about the company/firm and its products that the organization
makes available to those consumers (Root, 1994). According to Alvarez and Casielles (2005),
promotion is a set of stimuli that are offered sporadically, and it reinforces publicity actions to
promote the purchasing of a certain product. Promotional offer consists of several different
objects to create a better sale impact, for example, coupons, samples, premiums, discounts,
contests, point-of-purchase displays and frequent-buyer programs. Each of the promotion
techniques is intended to have a direct impact on buying behavior and perception about the
company or service providers. The objectives of promotion will be reached to a greater extent
when it is done sporadically, when the consumer does not expect it. Promotional actions must be
well planned, systematically organized, and commonly integrated into the subject corporation’s
strategic marketing plan.

8
 Chapter 3:
Conceptual Issues

3.1 Company Background

Banglalink is one of the largest cellular service providers in Bangladesh. Banglalink Digital
Communications Ltd. (previously Orascom Telecom Bangladesh Ltd.) is fully owned by
Telecom Ventures Ltd. (previously Orascom Telecom Ventures Ltd.) of Malta, which is a 100%
owned subsidiary of global telecom holding. following business combination, in April 2011,
between Vimpelcom Ltd. and Wind Telecom S.P.A, Vimpelcom owns 51.92% shares of global
telecom holding. Vimpelcom is one of the world’s largest integrated limited telecommunications
services operators providing voice and data services through a range of traditional and broadband
mobile and fixed technologies in Russia, Italy, Ukraine, Kazakhstan, Uzbekistan, Tajikistan,
Armenia, Georgia, Kyrgyzstan, Laos, Algeria, Pakistan, Burundi, Zimbabwe, Central African
Republic, Canada and Bangladesh. Vimpelcom is headquartered in Amsterdam, the Netherlands
and is listed as an ad on the Nasdaq global select market under the symbol “VIP”..

Banglalink had 1.03 million connections until December 2005. The number of Banglalink users
increased by 257 per cent and stood at 3.64 million at the end of 2006, making it the fastest
growing operator in the world of that year. In August 2006, Banglalink became the first
company to provide free incoming calls from BTTB for both postpaid and prepaid connections.
On August 20, 2008, Banglalink got past the landmark of a 10 million subscriber base.
Banglalink is a public limited company registered in Bangladesh under the Companies Act1994.
Telecom Ventures Limited, a fully owned subsidiary of Global Telecom Holding, owns more
than 99% shares of Banglalink. GT His traded on the Egyptian Stock Exchange under the
symbol (GTH.EY), and on the London Stock Exchange its GDR is traded under the
symbol(GLTDLI). VimpelCom Ltd. Owns majority shares of Global Telecom Holding.
VimpelCom is headquartered in the Netherland sand traded on the NASDAQ Global Select
Market.

Sheba Telecom (Pvt.) Ltd. was granted license in 1989 to operate in the rural areas of 199
upazilas. Later it obtained GSM license in 1996 to extend its business to cellular mobile, radio

9
telephone services. It launched operation in the last quarter of 1997 as a Bangladesh-Malaysia
joint venture.

Banglalink is today the 2nd largest mobile operator in the country and recently

Banglalink celebrated with 1 crore customers. This has been achieved in just three and a half
years.

3.2 Mission, Objectives and Strategy

Vision

Banglalink vision is simple: We're here to help. Banglalink renewed Vision recognizes that we
exist to help our customers get the full benefit of communications services in their daily lives.
The key to achieving this is that we work together and draw on our renewed Values and build
them into guiding light behaviors in our workplace.

Objectives of the company

Banglalink has a dual purpose to receive an economic return on its investments and to contribute
to the economic development of Bangladesh where telecommunications can play a critical role.
This is why Banglalink, in collaboration with Banglalink Telecom, is aiming to place one phone
in each village to contribute significantly to the economic benefit of the poor.

The People

The people who are making it happen- the employees are young, dedicated and energetic. All of
them are well educated at home or abroad, with both sexes (gender) and minority groups in
Bangladesh being well represented. They know win their in hearts that Banglalink is more than
phones.

The Strategies

Banglalink strategy is coverage of both urban and rural areas. In contract to the “island” strategy
followed by some companies, which involves connecting isolated islands of urban coverage

10
through transmission links, Banglalink builds continuous coverage, cell after cell. While the
intensity of coverage may vary from area to area depending on market conditions, the basic
strategy of cell-to-cell coverage is applied throughout Banglalink network.

The Service

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

The Result

By bringing electronic connectivity to rural Bangladesh Banglalink is bringing the digital

revolution to the doorsteps of the poor and unconnected. By being able to connect to urban areas
or even to foreign countries, a completely New World of opportunities are opening up for the
villagers in Bangladesh. Grameen Bank borrowers who provide the services are uplifting
themselves economically through a new means of income generation while at the same time
providing valuable phone service to their fellow villagers. The telephone is a weapon against
poverty. Banglalink completed its eighth year of operation and crossed the three million-
subscribers mark in early 2005.
3.3 Company Structure
The Shareholders

Telenor AS

Telenor AS (62%) is the state-owned Telecommunications Company in Norway, a country with

one of the highest mobile phone densities in the world. Telenor has played a pioneering role in
development of cellular communications, particularly, but not exclusively, GSM technology. In
addition to Norway and Bangladesh, Telenor owns GSM companies in Portugal, Denmark,
Greece, Austria, Hungary, Russia, Ukraine, and Montenegro, Thailand and in Malaysia. Telenor
is using the expertise it has gained in its home and international markets and putting it to use in
an emerging market such as Bangladesh. Telenor has many alliances in other countries, bringing
experience and competence, both technological and business, to ventures such as Banglalink.

11
Telenor has opened a regional Asia office in Singapore, an expansion that emphasizes its no
Barriers motto.

Subscriber of Different Companies

Subscriber of 1
company
6 6
Subscriber of 2
5
companies
Subscriber of 3
companies
63
Subscriber of 4
companies

Banglalink Management Team

Managing Director and Chief Executive Officer Ahmed Abou Doma

Chief Financial Officer Mohamed Hassan Osman
Chief Technical Officer Ahmed Fady
Chief Commercial Officer Asher Yaqub Khan
Sales Director Arif Mehmood Malik
Customer Care Director Muhammad Arshad
Human Resources & Administration Director Tarek Beram
Head of PMO & Supply Chain Abdus Saboor
Regulatory and Legal Affairs Director Zakiul Islam
IT Director Nizar El-Assad
Marketing Director Shihab Ahmad's

3.4 Color Recall Testing

The researcher tried to find out the color recall capability of the logo used by different mobile
companies. Color of Logos and graphics of all companies are unique. Among the 80 respondents
it was found that 70 respondents could recall (out of 80) the color of GP, 30 respondents could
recall the color of Robi, 35 can recall City Cell’s color, 50 can recall the color of Banglalink 10
can recollect the color of Teletalk and finally 8 can recollect the color of Airtel.

Table 1: Color Recall Testing

Company Out of 80 In Percentage

12
 GP 70 87.50

Robi 30 37.50

Banglalink 50 62.50

Teletalk 10 12.50

Airtel 8 10.00

160

140

120 87.5

100
62.5
80

60 37.5
40 70
50
20 30 12.5 10
10 8
0
GP Robi Banglalink Teletalk Airtel

Figure 2: Color Recall Testing

Discussion: Color recall testing was a very important question in finding out the brand image. It
was observed that in order to build up a strong brand image it is very much essential to develop
all the advertisements, logos and graphics upon one or more unique color. It helps customers to
easily remind that which company is giving what offers. At that time it becomes easier for them
to understand which company is giving the advertisement just by seeing the color only. GP’s
advertisements are basically built up by the major combination of red and green. This red and
green represent the national flag of Bangladesh. Any color combination which represents the
nationalism concept generally brings a good Though Airtel is working hard on brand image only
10% can recall the color since it has just arrived in the market. attraction among the population
of a country. For this reason it was observed that 87.50 % respondents were capable to catch the
exact color of GP. But in case of Robi, City Cell and Teletalk the color recall test do not provide

13
a strong color retention rate. But in case of Banglalink it reaches a satisfactory point which is
62.50 %. From the very beginning Banglalink always plays with the color of orange. In its
newsprint advertisements, television advertisements and also in other billboard advertisements;
this orange color is very much dominating. This could be a good reason why the color retention
of Banglalink is so much high.

3.5 Technology Recall Testing

It was asked in one question that whether the respondents are able to remember the technological
facilities provided by the company or not. After the survey it was observed that out of 80
samples 69 samples were able to recall what technology is provided by GP. 64 samples were
able to recall what technology is provided by Robi, 61samples were correct in answering City
Cell’s technology and 55 samples were correct in answering which technology is provided by
Banglalink.

Table 3: Technology Recall Testing

Company Out of 80 In Percentage

GP 69 86.25

Robi 64 80

Banglalink 61 76.25

Teletalk 40 50

Airtel 50 62.5

14
 50
69

GP
Robi
40 Banglalink
Teletalk
Airtel

64

61

Figure 4: Technology Recall

Discussion: With this question the researcher tried to find out how many respondents were able
to answering which technology is provided by which company. Whenever a company is coming
up with new technology they made which promotion to educate the market. GP is going to bring
the EDGE technology, Robi has launched GPRS technology, City Cell is serving CDMA
technology and Banglalink is serving GSM technology. In this question, it was observed that
more or less all the companies are able to educate the market regarding which technology.

3.6 Market size and Coverage

As the figure shows (green meaning network coverage), Banglalink has almost continuous
coverage throughout Bangladesh, apart from the hill districts of Chittagong and some patches of
Sunderbans.

Overall mobile phone penetration rate: 12%

Fixed network penetration rate: 0.83%

Coverage:
Districts- 61 out of 64
Upazillas- 506

15
The total market size of the mobile industry is 13.26 million approximately, as of June 2006. Of
this 63.9% of the market share is occupied by GP, 18.67% by Robi, 12.1% by Banglalink, 3.92%
by CityCell and 1.47% by TeleTalk (as of October 2006).
Among the products offered by GP, the pre-paid mobile to mobile subscription, Smile, has the
majority of subscribers amounting to more than 50% of GP subscriptions. The youth brand
'djuice' has climbed up to take the second position. Post paid subscriptions namely Explore 1 &
2, GPPP and Village Phone have around 500,000 subscribers among them.

Coverage
This refers to the area throughout Bangladesh is covered by GP. At present 61 districts and 506
upazillas are covered by GP.

16
3.7 Some Products and Services Offered by Banglalink
Banglalink major products

• Explore 1 - Post paid mobile with PSTN connectivity

• Explore 2 - Post paid with no line rent, 1 second pulse and bundle talk-time
offer
• Smile - Prepaid mobile to mobile
• Smile with PSTN - Prepaid with PSTN connectivity
• Djuice - The first segment (youth) based mobile offering in Bangladesh
market; it’s a prepaid product
• GP Public Phone - This post paid product was designed for commercial heavy users
• Business Solution - This unique segment-based products are targeted for corporate &
SME users as part of overall communication solutions of a
business house
• Village phone - Distributed by Grameen Telecom this product aims at income
generation through communication & enterprise development for
rural poor and destitute women.

SMS chat

The user would be able to chat through SMS with many friends at once through the mobile
phone.

SMS (Short Message Service)

With this service, you can receive and send Text Messages (a maximum of 160 characters per
message) to any GP or other mobile and to foreign operators' (international) mobiles as well
(conditions apply).

Voice Mail Service (VMS)

VMS works like an answering machine. When you are not available or outside the coverage area
or simply busy, the caller can leave a message in your voice mail box, which you may listen or
retrieve at your convenience.

17
EDGE / GPRS service

This service allows the subscribers to browse the internet, send or receive e-mails and use all the
advances of multi-media messaging in a 3rd generation mobile environment.

Hotline Service 121

24 Hour Customer Services regarding any problems

18
 Chapter 4:
Database

4.1 Human Resource Planning

Human Resource planning is the process of getting the right number of qualified and competent
people into the tight job at the right time. Putting another way, HR planning is the system of
matching the supply of people internally and externally with the openings the company expects
to have over a given time frame. The quality of the candidate and his/her expertise are deciding
factor how Banglalink will succeed in achieving its visions, objectives and tasks.

Potential/expected workload and expertise requirements and to ensure the optimum and effective
utilization of the Human resources for the entire Company, both for current and future
requirements.
• Possibilities for greater efficiency through reorganization and the use of tools/facilities,
and making adjustments during expansion and contraction.
• Employee turnover/employee mobility

4.2 Classification of Employees

Regular Employment: Career with Banglalink starts with a regular employment; which is
permanent in nature.

Part-time Employment: Students are encouraged to apply for this type of job. Working hours
are adjusted to match their class schedule and company need. This job also ends upon the
completion of contract.

Internship: Upon the completion of graduation courses, students are assigned internship projects
in their area of concentration. Under the supervision of a regular employee, they work for the
company for three months to generate a report on the project findings and recommendation.

19
Industrial Attachment: Students from Engineering/Technical institutes spend some time in the
company to get real life exposure related to their theoretical knowledge. During this tenure,
technical experts in our company guide them accordingly that helps to enhance their knowledge.

4.3 Job Description:

Recruitment process ideally begins with the analysis of job description and person specification
for that job. A job description and analysis of person specification provide the foundation for
stipulating the job title and salary scale of the position. Person specification defines the
education, training, experience, and competencies required by the job holder. The person
specification is vital, because the key part of the person specification, established at the
beginning, is used in structured selection interview.

Job description is the basis of Banglalink recruitment, selection and placement, training,
performance appraisal, salary administration, promotion and other personal actions for its
employees.

Job description is prepared by respective Head of the Department and a copy of it is sent to HR.
in case there is any change in the duties and responsibilities, then job description must be
revised. A copy of the latest job description is kept in employee’s personal file.

The appointing authority and the line manager shall ensure that each employee has an
appropriate and updated job description stating clearly the context, purpose, organ gram, duties
and responsibilities of the employees and person specification.

A copy of the job description is provided to the employee when he/she is appointed, promoted,
newly assigned or when deemed necessary.

20
 Chapter 5:
Findings of the Study

5.1 Ratio Analysis

Liquidity Ratio

Type 2019 2018 2017 2016 2015

Current Ratio 1.782131434 1.779237145 1.927449752 1.94453062 1.925814824
Quick Ratio 0.873244403 0.871826201 0.944450379 0.95282 0.943649264
Cash Ratio 0.712852574 0.711694858 0.770979901 0.77781225 0.77032593
Operating Cash
Flow Ratio 3.738235854 3.928207463 4.032948963 5.50196952 5.637047534

Profitability Ratio

Type 2019 2018 2017 2016 2015

Gross Profit
Margin 0.425332209 0.508813369 0.543350312 0.52614609 0.282795454
NOPAT
Margin 0.233322833 0.342297924 0.343539527 0.33456665 0.217963218
EBITDA
Margin 0.396972804 0.513982273 0.547201726 0.51288179 0.243475803

Leverage Ratio
Type 2019 2018 2017 2016 2015
Liability to
Equity Ratio 1.715722549 1.010419773 1.155721629 1.81323284 2.383683916
Net Debt-
-
Equity Ratio 0.02440627 0.050475967 0.020498016 0.6861201 1.277813158
Debt Capital
Ratio 0.250455379 0.176997387 0.242843738 0.48729984 0.624953359
Coverage Ratio
Type 2019 2018 2017 2016 2015
Interest
Coverage Ratio 15.15760863 74.51125631 28.93603212 15.4632289 6.108394605

21
5.2 Compensation and Benefits

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. Banglalink 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.

Banglalink 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, Banglalink determines a number
of criteria for designing a compensation system. The criteria are:

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.

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.

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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.

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.

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 Years of Service

@ 1 month's basic/for each year 5 years

@ 1.5 month's basic/for each year 5 Years to 10 Years
@ 2 month's basic/for each year 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.

Bonus
All employees are eligible for two bonus in a calendar year which is an amount equivalent to
their two months basic salary.

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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
Hindu : Durga Puja
Buddhist : Buddha Purnima
Christian : Merry Christmas

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:
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.

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 Chapter 6
Conclusion

The major findings from this report are given below:

• There is no doubt that Banglalink is the market leader in telecommunication business in

Bangladesh.
• The current market share of Banglalink is 63.9%
• Currently Banglalink has more than 14million subscribers.
• It posses a strong financial position. . It has sufficient current asset in respect with the
current liabilities. Quick ratio, cash ratio, operating cash flow ratio, leverage ratio,
coverage ratio is very fine.
• Though the product offer of Banglalink is not attractive compare to other operators, it
provides the best network and customer service.
• Its HR policy is very much organized compare to other operators.

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6.1 Recommendation

After all the analysis and the findings about Banglalink, my recommendations are given below:

To the Banglalink authority:

Network Availability: Sometimes poor network is the vital problem for the subscribers due to
some planned works. So it should be solved technically to ensure the users to enjoy full fledge of
networks. If GP is having lack of technical equipment or technical hands they should
immediately fulfilled the desired necessity.

Coverage: Main attraction behind Banglalink Services is the nation-wide roaming facility; but
still needs to increase the coverage and scope are still there.

Charge: Grameen Phones provides less facility for the subscribers. It should charge the users the
least amount as its intention should be in long run, economies of scale.

Hotline: GP should train its customer relation people well enough to solve the problems
customers on the hotline. Call waiting time should be minimized. Also number of customer
relation employees should be increased in relation to increase in sales. GP can provide less
charge hotline to serve their existing subscriber more effectively.

Availability of Connection: Sometimes users’ dissatisfaction arises due to unavailability of

connection facility, because no one usually can get connected at once while there is some
planned work or technical up gradation. This problem should be immediately solved to increase
customer satisfaction.

Features: GP should try to increase the features which are supported by GSM features. For
example, 3 Friends and Family number for prepaid numbers.

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FAX: The only way for application, suggestion or any valid reason of any subscriber they need
to send FAX which is complicated, time consuming, expensive and also difficult from a remote
place. GP can arrange some other procedure for their valuable subscriber.
Others:
- Other problems like unavailability of Pre-Paid cards should be resolved.
- GP can add disaster SMS for the customer.
• The company should efficient courier services to reach the bill to the right customer as
soon as possible.
• Number of BTS station needs to increase to increase the capacity.
• Credit Control system should be improved

To the User’s:

Patience: User’s should increase their patience and must build the confidence level on
Banglalink. In today’s business, organization can’t sustain without customer satisfaction, since
competitors are here, so definitely customers will be attracted with new facility.

Good News: After a long time, GP is the only company to make mobile “a necessity, not a
luxury.” The way technology is improving, GP should be given some time to re-
engineer/redesign their benchmark to find what should be ideal for customers.

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6.2 Conclusion

Banglalink still has a positive image in the Mobile market. Due to its various innovative products
and wide market coverage, strong network, at cheap rate with various service centers and its
value added services, it can be considered as the market leader in the telecommunication industry
and its competitors are far behind. The Pre-Paid System has huge market demand. The people,
process and physical evidence of its services, builds the image and demand of Banglalink. By
people it is meant the employees who interact with the customers directly, and the company’s
customers. Gaps in physical evidence occurs when customer’s have problems with their SIM
(lost SIM, blocked, card error etc), handset, or any other problem regarding connection that takes
place due to the customer’s own fault. As subscriber’s has to pay for any replacement, they feel
these hassles and costs could have been avoided if Banglalink wished. GP could have avoid these
problems through training their customers on the proper use of handling phones, training on
handsets and also informing them about the rules and regulations of the company individually as
a part of value added service.
Appropriateness of technology in the context of a poor economy is not an issue, the
appropriateness of institutions is. Institutions need to be developed that can deliver the
technology to the common people so that they themselves can harness its power. Just as aspirin
lowers fevers in both adults and children but children need syrups while adults can handle
tablets, special delivery mechanisms may need to be developed for growing needs of the
technology. Banglalink has not created any new technology, but it has established a new way,
compatible with economic and social circumstances in rural Bangladesh, to provide access to
telephones for the rural people in Bangladesh.
Country like Bangladesh, where people have dreams, not the ability. Besides, the real truth
“whether technology drive strategy or strategy drives technology” – is a challenge for the
organization in the dynamic world. So, a big question mark is still there, between the Banglalink
and user group. – How much to provide, what should be the ideal limit, what should be the
charge, are they liable to change, viable to operate in the locality, and are the people really want
those extra? Therefore, GP will go for the user to solve or consider it as mission impossible!!

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 Bibliography

• Heneman, H.G, Judge, T.A. and Heenman, R.L ”Staffing Organizations”, 3 rd Edition,
Irwin/McGraw-Hill, NY,USA.
• Drucker, Peter, Managing for the Future, New York: Truman Talley Books/Dutton 1992.
• Duane, Michael John, Customized Human Resource Planning: Different Practices for
Different Organizations, Westport, CT: Quorum Books 1996. Eastman, Lorrina J., and
Succession Planning: An Annotated Bibliography and Summary of Commonly Reported
• Organizational Practices, Center for Creative Leadership: Greensboro, 1995. Succession
planning is crucial to the continuity of an organization’s leadership.
• Ettore, Barbara, "Benchmarking: The Next Generation", Management Review, June
1993, Vol. 82, No. 6, 10-16.
• London, M., Bassman, E., & Fernandez, J., Human Resource Forecasting and Strategy
Development: Guidelines for Analyzing and Fulfilling Organizational Need, Westport,
CT:
• Wray, Grover, "The Role of Human Resources in Successful Outsourcing," Employment
Relations Today, spring 1996, Vol. 23, No. 1, 17-23.
Websites:
• www.google.com
• www.Banglalink.com
• www.chitmanhr.com

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 Appendix

QUESTIONNAIRE

1. Are you happy with your job environment?

(a) Yes (b) Moderately Happy (c) No

2. Are you happy with your training process?

(a) Yes (b) Moderately Happy (c) No

3. Are you happy with your top level management?

(a) Yes (b) Moderately Happy (c) No

4. Do you think the technology facilities are up-dated which provide by GP?

(a) Yes (b) No (c) No commence

5. Are you happy with your promotion process?

(a) Yes (b) Moderately Happy (c) No

6. Do you happy with your company management structure?

(a) Yes (b) No (c) No commence

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7. Are you happy with your other facilities like (leisure time or medical facilities)?

(a) Yes (b) Moderately Happy (c) No

8. Are you happy with your company salary structure?

(a) Yes (b) Moderately Happy (c) No

9. How many times you get bonus in a year?

(a) Once in a year (b) Twice in a year (c) Thrice in a year (d) More than that

10. Do you get any benefits for the over time?

(a) Yes (b) No (c) Sometimes

11. Is there any discounted medical service for the employees?

(a) Yes (b) No

31