HRM PRACTICES IN ROBI AXIATA LTD.

Prepared for: Dr. Serajul Islam East West University Dhaka

Prepared by: Qazi Ishtiaq Newaz ID # 2011-1-95-054 MBA East West University Dhaka

East West University

8th April, 2012

Executive Summary

This assignment tends to provide information about HRM Practices in Robi Axiata Ltd. and the HR policy and process system use by the company.

The policy and process use by company is discussed in detail. Robi strengths and competencies developed over the years, Robi aims to provide the best working environment, complete package & quality experience for its employee. In here human resource principles, compensation and benefit package for employees, recruitment process, selection process, performance appraisal, training and development are discussed in detail.

Some guidelines are also discussed which HR department other divisional head are going to apply in future for the betterment of their employees.

TABLE OF CONTENTS:

ROBI AXIATA LTD.

1 2 3 7 9 10

HUMAN RESOURCE PRINCIPLES

COMPENSATATION & BENEFIT PACKAGE FOR EMPLOYEES

RECRUITMENT PROCESS

PERFORMANCE APPRAISAL

TRAINING & DEVELOPMENT

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ROBI AXIATA LTD.

Robi was incorporated on 15 November 1997 as a joint venture company between Axiata Group Berhad, Malaysia and NTT DoCoMo, Japan. Axiata (Bangladesh) Limited, formerly known as Telekom Malaysia International (Bangladesh),. ROBI started its commercial operation in Dhaka, Bangladesh as a GSM cellular phone operator with the objective of offering the state-of-the-art and modern telecommunications services to the people of Bangladesh at a competitive prices. With a tremendous response from customers in Dhaka, ROBI has started its operation in Chittagong from 26th March 1998. The company operates GSM 900 and 1800 cellular services under a 15-year license granted in November 1996. Robi uses the Global System for Mobile Communications (GSM) as the digital cellular system. The system is fully featured with services like basic telephony, data and Value Added Services (VAS). ROBI provides as integrated and fully computerized Customer Care and Billing System (CCBS) which supports virtually all subscriber-related functions. Axiata (Bangladesh) Limited is a dynamic and leading countrywide GSM communication solution provider. It is a joint venture company between Axiata Group Berhad, Malaysia and NTT DoCoMo, Japan. Axiata (Bangladesh) Limited, formerly known as Telekom Malaysia International (Bangladesh), commenced its operation in 1997 under the brand name Robi among the pioneer GSM mobile telecommunications service providers in Bangladesh. Later, on 28th March, 2010 the company started its new journey with the brand name Robi. To ensure leading-edge technology, Robi has the international expertise of Axiata and NTT Docomo. It supports 2G voice, CAMEL phase 2 and GPRS/EDGE service with high speed internet connectivity. Its GSM service is based on a robust network architecture and cutting edge technology such as Intelligent Network (IN), which provides peace-of-mind solutions in terms of voice clarity, extensive nationwide network coverage and multiple global partners for international roaming. It has the widest International Roaming coverage in Bangladesh connecting 553 operators across 207 countries. With its strengths and competencies developed over the years, Robi aims to provide the best working environment, complete package & quality experience for its employee. Total No Of Employees =1600 Total No of Male Employee=1408 (88%) Total No of Female Employee=192 (12%)

Website Address: www.robi.com.bd 1

HUMAN RESOURCE PRINCIPLES

The Robi recognizes that the employees are the most important resources in the organization. Therefore, the employees, who serve in different Divisions / Regions / Locations, are united in their common endeavor to contributing to the strength and growth of the Organization.

EMPOWERING YOU: We are there for you, where you want and in the way you want, in order to help you develop, grow and make the most of your lives through our services.

Principles: ROBI employees hold ourselves accountable to the following guiding Principles for the organization. 1. 2. 3. 4. 5. 6. Being respectful towards everyone. Being trustworthy by action. Being passionate and creative in all we do. Keeping things simple in the way we do things. Being ethical and transparent. Demonstrating individual and collective ownership. Practicing an open culture in communication and interaction.

HR Objective: Attract quality employees with good caliber Retain and motivate all employees with a view to maximizing their contribution with enhanced efficiency and productivity Provide a working environment in which employees at all levels and in conformity to their positions are treated fairly and consistently wherever they are required to work and thus developing and maintaining an effective workforce Develop employees to assume position of authority and responsibility in the Organization with a thorough knowledge and commitment to the Organizations objectives

COMPENSATATION & BENEFIT PACKAGE FOR EMPLOYEES

Allowances

Allowances are paid with monthly take-home salary; namely house rent, medical, conveyance & utility. Overtime Allowance Only Executives (Grade 17, 18, 19, 20, 21 & 22) and Non-Executives (Grade 1, 2, 3, 4) are eligible for overtime. Maximum ceiling for overtime is 48 hours in a month (except Grade- 1 & 2). Meal Allowance All confirmed regular employees are entitled for a monthly meal allowance as per their Job Grade which is payable with their salary. Children Education Allowance All regular employees are entitled for Children Education Allowance up to maximum 2 children (age should be with in 25 years). Allowance is payable with the monthly salary as per the employee Job Grade.

Salary Review

Salary is reviewed periodically with consistent with the living standard and competitive salary package offered by other multinational organization.

Provident Fund and Gratuity

The contribution in PF fund is 10% of basic salary from both sides. Employee will be eligible for company contribution after 5 years of the membership of the fund. Employee will also be entitled to a gratuity payment.

Group Life Insurance Policy

AXB management has approved a group life insurance policy under which, death, permanent partial disability & permanent total disability shall cover. And the insured amount for life is 36 times gross salary. 3

Child Birth Benefit

All regular employees are entitled for Child Birth Allowance as per stated below: Manager and above: (Both employee and spouse) Tk. 15,000 per delivery Assistant Manager and below (Both employee & spouse) Tk 10,000 per delivery

Hospitalization Fund Policy

All employees are entitled for the benefit (All permanent employees and their families, all probationers and their families and all contractual employees & their families including Non Executives) as per the level of emplacement/ Grade. (Family means spouse and children up to 25 years old)

Transfer Reimbursement

The company shall pay a transfer allowance of TK. 15,000/ for a married employee (Executive & above) and Tk. 9,000/ for a single employee, for the inconvenience caused by such transfer from one station to other. Transfer allowance for non-executive is Tk- 9,000/ (married) & Tk6000/ (single) respectively. Traveling allowances, Meal allowances and Accommodation allowances shall be paid according to company rules.

Wedding Loan

Interest free wedding loan for the confirmed permanent employee. Loan amount is 3 times Gross salary (maximum amount of Tk-100,000/)

Long Service Award

For all confirmed regular employees the reward will be with the form of Gold medal worth different values relating with time frame:
Years of Service After 5 years After next every 5 years Reward 2 vhori Gold 3 vhori Gold

Mobile Handset and Connection

Mobile handset with connection shall be given to employees according to the company rules & policy and employees will be entitled to monthly ceiling according to grade. Employees are eligible for one (1) handset for a period of 2 years. Company will not replace or issue new handset/accessories in case of lost, technical default or other reasons. Employee will own the handset at the end of the two years rather than return it to the store.

Leave

Each permanent employee is entitled to the following leaves: Annual Leave 50% of the entitlement of the annual leave can be accumulated or carried forward to the next service year and rest will be lapse if not availed. Medical Leave Employee medical leave entitlement is 14 days for all level of executives. Employee must have to produce medical certificate for medical leave. There is no provision of accumulation of medical leave. Accident Leave Employees who are injured by an accident occurred while on duty will be allowed Accident Leave with full pay for the period required for full recovery but not exceeding 20 working days. Further extension will be granted subject to submission of recommendation from his/her physician who is handling the case and Management discretion. Appropriate insurance coverage is made for partial or permanent disablement. Maternity Leave A female employee is granted maternity leave (pre-natal and post-natal) for a period of not exceeding 120 consecutive days as maternity leave with full payment. Such entitlement applies for two times during her service with the Company. Leave shall be granted after 28 (twenty eight) weeks of pregnancy. A pregnant female will inform in writing to her supervisor confirming the date of delivery along with a medical certificate. 5

Paternity Leave Male employees are entitled for 3 working days paternity leave. One employee can avail paternity leave up to two times during his tenure. Compassionate Leave Employees are entitled for 3 working days compassionate leave in case of death of their parents, spouse and children to cope up with the shock. Hajj Leave Only permanent employees (service length minimum 2 years) can take Hajj Leave of 20 consecutive days (including holidays) for Holy Hajj with prior approval of the Management. An employee can avail Hajj Leave once in his/her service tenure with ROBI . Encashment of Annual Leave If any employees leave application is rejected for two times in a year, he will be eligible for applying for the leave encashment upto a maximum of 10 days. The encashment will be based only on Basic salary

RECRUITMENT PROCESS
Recruitment Plan is based on business plan. Employee requisition is raised from different departments defining the job description, job profile, required qualifications, age, experiences and other specific requirements. The Organization Recruitment and Selection Policy is:

Be fair and consistent Be non-discriminatory on the grounds of sex, race, age, religion or disability Be confirm to statutory regulations and agreed best practice

RECRUITMENT PROCESS Headcount planning is done to determine manpower requirement for a given period, keeping in view the utilization level of existing workforce in conformity with the corporate business objectives. BCCB desires to have an optimum number of jobs with a view to achieving maximum productivity consistent with effectiveness. Headcount planning is essential for: 1. Projecting systematic manpower requirement on realistic basis, 2. Removing employee imbalance and maintain workload distribution, 3. Enabling the organization to establish standard of performance, 4. Adopting technological changes, 5. Provide realistic training and development, and 6. Career planning / talent management Divisional Heads in coordination with and assistance of the HR Department plan their manpower requirements. This plan is submitted to the CEO and then forwarded to the BCCB Board for approval. The recruitment process is done based on HR planning which is done at the beginning of the year, where HR submits the required number of new employee in all divisions., detail of job description & time line for recruitment to the top management. Other than HR plan, situation wise new recruitment is done in affirmative action plan when division submits their request to HR. Vacancy may arise because of organizational growth, separation; resignation and / or newly established position complete a Job Vacancy Form which confirms: Send the authorized Job Vacancy Form to the HR Department. No vacancy can be processed without this authorization. 7

RECRUITMENT FLOW

SELECTION PROCESS

Preliminary reception of application Short listing Written test Interview Reference & background Check Medical Fitness assessment Hiring Decision

All prospective employees for a permanent position shall be required to undergo medical examination to determine prospective employees physical and mental fitness to perform the job for which s/he is being considered. 1. Human Resources Department will issue a letter in the name of the Organization Doctor to carry out medical examination. All reports should be kept by Human Resources Department. A copy may be given to employee on request. 2. Medical examination report should be in the Organizations prescribed form and accompanied by all pathological test report. 3. Cost of the test will be borne by the Organization.

PERFORMANCE APPRAISAL
The purpose of this policy is to establish a standardized performance agreement and appraisal system for employees that is characterized by clearly-defined performance goals and objectives and increased employee involvement. This information is done by setting of objective of the year. The Management shares the overall yearly target with all employees in Business update meetings and confirms the target after getting employee concern. Management by Objective (MBO) theory is followed in the organization. Information gained through the performance appraisal / evaluation process is used for a variety of performance-related activities such as: providing promotion, upgradation, providing bonus, transfer, training etc. The organization is using a Future Oriented method for performance appraisal. Appraisal Policy: A. It is the policy of this organization to: a. Inform employees what is expected of them during each quarter of performance rating; b. Setting quarterly as well as yearly objective; c. Provide feedback to employees regarding how well they are doing near the midpoint of the performance rating period, and revise quarterly objectives if needed; d. Formally rate employees at the end of each performance-rating period. B. Supervisors are required to use authorized Appraisal Forms for conducting employees performance appraisal/evaluations. The Employee Performance Appraisal is completed by the employee and submitted to their supervisor for approval at the beginning of the rating period. Before the performance meeting the employee must perform a self-evaluation of their objectives developed in the performance planning stage. Increment depends upon yearly Performance Appraisal. If any employee not eligible for increment for his/her poor performance, then also Robi gives increment according to the inflation, for cost of living adjustment. Prior to the review of a performance evaluation, the employee's supervisor must submit an employee rate recommendation through the proper channels for authorization and implementation.

TRAINING & DEVELOPMENT

The Organization is committed to providing both the training necessary to ensure the job is done effectively and to allow each employee to further professional development. Employees are authorized to attend training programs based on their development needs and the requirements of the organization. KEY POLICIES Development is seen as a joint responsibility between individual employee and his / her manager. Training programs is structured and incorporated with Organization needs, be cost effective and represent substantive skill development efforts. Concerned manager bears the ownership of training and development initiatives, where HR Department acts as facilitator. From each division managers provides a Training Need Assessment (TNA) form to the employees. The employees fill up their required training subject from the listed subject. Each year an individual employee is assigned with 8 training. HR division collects all the TNA form and compile & assign trainings accordingly. HR not only arranges training in the country but

based on grade, position & requirement training outside the country is also arranged.

GUIDELINES a) HR Department in consultation with Divisional Head will prepare a Training Road Map against each position. b) HR Department will propose yearly training plan in line with identified training needs proposed in annual performance assessment, career and succession planning.

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HR in conjunction with concerned Divisional Head will determine most suitable training method(s) to satisfy an identified need.

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